GMS weekly report on INDIAN shipbreaking industry for WEEK 33 of 2011:

Arrested Activity!

Below 500:

As levels on dry vessels dipped below the USD 500/LT LDT mark, the optimism of several weeks ago seemed all but washed away as a new reality of edginess and uncertainty began creeping into the local market.

Demand dries up:

Indeed, in many cases it seemed that demand had all but dried up with many unwilling to take chances on new units hitting the market. Instead, most (local recyclers) seemed content bidding at conservative levels or simply electing to remain busy with recycling activities with recently delivered tonnage.

Candidates keep coming:

While some cash buyers have continued to take chances on new vessels with the anticipation that there may perhaps be some sort of return to form in September (especially towards the end as Bangladesh might go into a purchasing fray before their possible closure), we have seen at least one vessel being concluded at an unexpectedly high price.

Being sold on 'as is' basis in the Bahamas, US owned M/T COAST RANGE (10,532 LDT) was committed this week for a whopping USD 455/LT LDT. Considering the delivery expense to the Indian sub-continent and the current state of the market, the Buyers have taken on some risk indeed!

Nevertheless, the candidates kept on coming as rates showed few signs of improving however, until some new benchmark on levels is set, it may take owners some convincing before selling at these proposed new prices.

Source: Sourced from GMS Weekly. 23 August 2011

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