27 August 2014

GMS weekly report on Indian ship breaking industry for WEEK 34 of 2014:

The Indian market once again displayed its remarkable bouncebackability this week with an almost complete recovery seen on the local steel plate prices and an Indian Rupee that was beginning to settle into the low 60s against the USD.

It had been a torrid previous few weeks in Alang, with much of the market tonnage diverted to rivals in Pakistan (including even roros, tweens and smaller bulkers much to their surprise and regret).

Approximately USD 25 per LT LDT had been wiped off the local steel plate prices in some alarming and unforeseen falls and the currency had started to depreciate again to worrying levels above INR 61 against USD.

In rollercoaster scenes that have become almost synonymous with the Indian market of late, steel gains virtually eradicated the losses of the previous week and the Rupee steadied itself into the low 60s again much to the delight and relief of increasingly concerned end buyers and cash buyers.

With the Pakistan market expected to slow in the coming weeks, it could be that Indian buyers begin to pick up some of the slack, as long as fundamentals remain steady going forward something that is never assured in India.

The favored USSR 91 built tanker JAG PRACHI (9,680 LDT) was sold as is Goa this week for a decent USD 484 per LT LDT she could end up being a Pakistan or even Bangladesh candidate however, depending on gas free status and where ends up paying the best money.

Source: steel guru. 27 August 2014
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_34/347701.html

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