GMS weekly report on INDIAN shipbreaking industry for WEEK 27 0f 2011:

The early signs of some form of market recovery emerged this week with a firming of market prices by some INR 500 /LT LDT (almost USD 10/LT LDT), on the back of improving local steel plate prices. In light of falls of almost INR 2,000 /LT LDT (or USD 40/LT LDT) from the previous month, it is evident that there is still some way to go before the delicious levels from the earlier month are visible again.

Numbers are still below USD 500/LT LDT on dry units with just excess 500/LT LDT there for those available wet candidates.

Reefers, bulkers and tweens continue to hit the market and local demand despite capacity remaining somewhat stretched indicating that Indian buyers will find the necessary space at the right price.

Three enbloc tweens from Chinese owners King Glory shipping based out of Nanjing found a buyer walling to speculate at strong levels for a mixed bag of Norwegian, Polish and Japanese builds. These owners have already sold two further candidates this year with decent built tweens always likely to fetch prices above bulkers.

Additionally, even though owners of container vessel MSC DIMAN have reportedly "withdrawn" the vessel from the market, most veterans know that the ship is likely sold at a WHOPPING price north of USD 540/LT NET LDT.

Source: Steel Guru (Sourced from GMS Weekly) 12 July 2011

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