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GMS Market Commentary on Shipbreaking in India in Week 32 - FLAWED FUNDAMENTALS!

Steel News - Published on Wed, 14 Aug 2019

The 15% decline in local steel plate prices has stunned and shocked the ship recycling industry in Alang, leading to withdrawn offers and dramatically plunging vessel prices. Even offers in the mid USD 300s/LDT on basic vessels are now proving hard to come by as end Buyers seek some sort of stability on plate prices and the currency before dipping back into the market once again. Last week alone, local steel plate prices declined further by nearly USD 18/Ton, resulting in an overall crash in excess of USD 70/Ton since early July.

Moreover, on the back of India’s mid-week announcement whereby Kashmir’s special status was revoked, local fundamentals turned shaky as the Indian Rupee suffered one of its largest single day depreciations, declining from Rs. 68 to just over Rs. 71 against the US Dollar.

As such, being the weakest placed subcontinent market, Alang certainly has some ways to go before it can become competitive enough to take in tonnage once again.

Source :

Posted By : Ratan Singh on Wed, 14 Aug 2019
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