26 June 2012

GMS report on Indian shipbreaking industry for WEEK 25 of 2012:

With the Indian rupee trading at just over 57 to the US Dollar towards the end or the week, total confusion and panic entered the market and main end buyers simply held back their offers.

This has been an ongoing theme for a couple of months now, a trend that has knocked off hundreds and thousands if not millions off end buyer purchases during this time.

Consequently, a whole swathe of buyers has simply refused to offer while the currency crisis persists. Whilst capacity and demand remains good (as good as the present can permit), there are very few signs of any sort of settled levels with which to base firm offers on.

As a result, very few deals have been concluded recently, and those that have been done and are only just arriving, continue facing close scrutiny from end buyers. In most cases, end up facing trouble and losing money in the process.

Nasco sold their East German built general cargo type vessel YONG AN MEN (9,210 LDT) for USD 365/LT LDT in the one market sale of the week. East German built vessels are very low on the list of desired vessels in India due to the wastage of the steel.

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_25_2012/270340.html

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