22 November 2012

GMS weekly report on Indian shipbreaking industry for WEEK 46 of 2012:

Diwali holidays, coupled with falling local steel plate prices and a currency that has once again come off significantly and resulted in some very poor sentiment this week in India.

In fact, for most cash buyers, it was not even worth offering vessels into the Indian market due to the terrible numbers coming back their way. For those with unsold inventory, it could be a difficult time ahead in minimizing their losses and performing on those high priced deals of several weeks ago.

The reality is that bulkers are once again trading well below the UD 400 per liter LDT mark and tankers/containers are somewhere in the region of USD 420 per liter LDT less 3% if any levels were quoted at all.

With 40 vessels beached last month, 10 already this month and another 35+ at anchorage or incoming, it has been another bumper month in India and perhaps the time-off afforded to the market owing the Diwali holidays has been fully deserved.

It will be interesting to see where the market emerges again in the coming week, with both owners and cash buyers alike hoping that the market resumes its old swagger.

Source: Steel Guru. 20 November 2012
http://www.steelguru.com/indian_news/GMS_weekly_report_on_India_ship_breaking_industry_for_WEEK_46/292238.html

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