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GMS Market Commentary on Shipbreaking in India in Week 46 - RETICENT!

Steel News - Published on Tue, 20 Nov 2018

Image Source: SteelGuru
India experienced another lackluster week as rates cooled further and many end Buyers started to categorically withdraw their offers (some even refraining from offering at all) until some sort of market stability is seen. Despite domestic steel plate prices continuing their volatile dance for yet another week, the currency, while stable, has been trading in the Rs. 72.XX range against the US Dollar for most of the week, eventually ending the week in the high Rs. 71s and finally providing some much-needed signs of encouragements.

Meanwhile, ahead of their sub-continent competitors, offshore units (rigs, tugs and other such specialist units intended for green recycling) continue to arrive steadily into Alang, with India finding and appreciating the value of such vessels, including the associated challenges such as heavier drafts.

The heavier drafts (especially on semi-submersibles) result in further away from shore beachings, subsequently resulting in delays for local recyclers as they pull these units closer to their yards and initiate cutting procedures, all while interest payments on these expensive LCs are ticking. As such, the perceived premiums on these units may dissipate on future units.

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Posted By : Nanda Koijam on Tue, 20 Nov 2018
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