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GMS Market Commentary on Shipbreaking in India in Week06 - SIGNS OF LIFE!

Steel News - Published on Tue, 12 Feb 2019

Image Source: SteelGuru
India is starting to show some signs of life this week, with local port reports finally starting to show some positive trajectory, followed by some renewed interest in market vessels (although still entirely uncompetitive with Bangladesh), and several decent LDT units having been recently sold for class NK only HK SoC green recycling.

Moreover, there is an overall sense amongst local Recyclers that at least until the onset of Monsoons, the local market will stabilize and possibly even register improvements. While the first quarter of the year has historically been one of fair weather for the Indian ship recycling sector, time will tell whether this recent optimism will hold true.

Notwithstanding, as has been the case of late, as long as end users continue to secure their share of offshore units and green vessels below the USD 400/LDT, they see no point in trying to compete on the plethora of expensive market ships that have been heading to Bangladesh.

On the local fundamentals front, in light of the recent events in Brazil and Vale now announcing cuts in iron ore production, a ripple effect may have seen Indian local steel plate prices firming through much of the week. The Indian Rupee too has firmed and ended the week near the Rs. 71 mark against the U.S. Dollar.

As such, the firming fundamentals are certainly a welcome sign for an Indian market that has suffered through some of the most incessant volatility this market has witnessed.

Source :

Posted By : Rabi Wangkhem on Tue, 12 Feb 2019
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