GMS weekly report on India ship breaking industry for WEEK 5 of 2011:

After the recent buoyancy in the market that had seen manv decent dry units being negotiated in and around the USD 500/LT LDT mark, India suffered something of a slump this week with demand for 10,000 LDT units and up all but disappearing.

Indeed, cash buyers have begun to dump their tonnage into the local market for fears of a further downward trend - and amidst little movement in Bangladesh towards any type of imminent reopening. As the week ended, it was China that stole the headlines by snapping up tonnage that until recently would have been destined for the Indian sub continent.

There were a couple of market sale to report, with the bulker VIGSNES (7,115 LDT) going for a relatively strong LJSD 487/LT LDT. The other sale of the week was LPG CLIPPER POSH, that was sold on "as is" basis and fetched a whopping USD 540/LT LDT, thanks to the vessel being full spare, having about 74 tons of stainless steel onboard, and nearly 465 /130 tons of IFO / MGO being included in the sale.

For the most part dry units are receiving local offers of LJSD 470-75/LT LDT today with any available tankers going for some LISD 30 or so higher at just above LTSD 500/LT LDT.

Having clearly been the market leader for the past few months in demand and available prices, it is perhaps only fair that India experiences a period of time out of the limelight as they begin to digest the vast quantity (and market majority) of tonnage taken so far this year.

Source: SteelGuru (Sourced from GMS Weekly). Tuesday, 01 Feb 2011

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