20 September 2011

GMS weekly report on INDIA shipbreaking industry for WEEK 37 of 2011:

Some interesting sales from the past few weeks have given the market something of a glow that local fundamentals do not appear to support.

The HENG SHUN MEN (5,747 LDT) received a price of USD 517/LT LDT and the full spares tween UNION CARRIE (5,185 LDT) saw a whopping USD 530/LT LDT last week. Both prices were indicative of speculative cash buyer moves - something that continued into this week as well.

The tween TARPON CLIPPER (8,139 LDT) from Monaco based owners saw a price similar to that of the UNION CARRIE of last week, whilst two larger bulkers, the Russian built ESTRECHO DE MAGALLANES (15,991 LDT) went for USD 445/LT LDT 'as is' Chile (it is anybody's guess where the market will be at the time of delivery), and the larger LDT V AUSTRALIA (27,124 LDT) received USD 515/LT LDT 'as is' Singapore.

There is still a very definite disconnect though between the numbers put forward by cash buyers and what the end buyers are offering with the rupee still weak (but improving marginally as the week ended) against the US Dollar and many users prepared still to wait and watch after tlie recent dramatic fluctuations.

Source: Steel Guru. (Sourced from GMS Weekly). 20 September 2011

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