26 July 2012

GMS weekly report on Indian shipbreaking industry for WEEK 29 of 2012:

The anticipated Supreme Court hearing in India was again postponed, not once but twice already, as the industry was left sweating on any potential closure. First, the hearing for Friday was postponed until Monday and then, the hearing for Monday was put off until the following week.

Meanwhile, clearances and vessel deliveries up until that time do not appear to be affected and it remains very much, business as usual on the shorefront.

Most in the industry are expecting a positive verdict - it seems unfair to think that a bulker (albeit one converted from a notoriously reputed tanker), the ORIENTAL NICETY {ex EXXON VALDEZ) could be a toxic ship capable of causing the extent of the (environmental) damage it has been purported to.

Still, the doubts do linger, especially after the industry witnessed the enforced closure of the Bangladeshi market, off and on, for almost 18 months.

Any closure would be almost unthinkable for an industry that has of late, started to once again get back on its feet following as much as 20 percent of end buyer purchases being knocked off the value of vessels over the past 8 months or so, due to the depreciating Rupee.

Despite recent gains, the currency remains volatile, still perched precariously at almost 56 to the dollar (at the time of writing). Additionally, local steel plate prices too have shaved off almost 1,000 rupees/LT LDT (USD 20/LT LDT) of their value over the course of the last week, leaving the recent mini-revival (an upward shift by some USD 15-20/LT LDT) under some doubt.

Meanwhile, the smaller Portuguese built chemical tanker UNION BRAVE (5,808 LDT) went for an impressive USD 425/LT LDT gas free for hot works - with the full spares and good UK ownership likety to be responsible for the impressive price on show.

Source: Steel Guru (sourced from GMS Weekly). 25 July 2012
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_29_2012/275143.html

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