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GMS update on Shipbreaking in India in Week 41 - DIWALI DAMPENER!

Steel News - Published on Fri, 20 Oct 2017

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Even though Indian Buyers remain open to negotiate, they were only willing to engage in dialogue on those units where Cash Buyers were willing to discuss at their intended / offered levels. As both Bangladesh and Pakistan (to an extent) struggle with depreciating currencies and declining local steel plate prices, we now expect a greater number of deals to take place into India in the coming weeks, especially after what has been a fairly bleak summer on the sales front.

However, this would have to wait for at least another week as the upcoming Diwali holidays next week is sure to put a dampener on negotiations, as local Recyclers remain busy with prayers, celebrations, and festivities.

On the sales front, Bumi Armada of Malaysia sold their second unit for HK SoC green recycling as the diving support Vessel ARMADA CONDOR (3,773 LDT) fetched an extraordinary USD 420/LT LDT basis an ‘as is’ Dubai delivery. The rich machinery on board (8 generators and 6 thrusters) clearly adding to the above average price on show.

While there have been various green recycling acquisitions (for HK SoC only) over the last few months, during this time, a healthy majority of the decent LDT dry and container units have been diverted towards Pakistan whilst Bangladesh has been busy raking in the tankers.

On the local fundamentals front, despite firming a touch against the US Dollar this week, the Indian Rupee is still trading in the high INR 64s whilst local steel plate prices appear to have (temporarily) stabilized.

As the new reality on prices settles in and as competing sub-continent markets remain in a comparatively jittery position, we do expect Alang to turn rather busy as November comes around.

GMS Weekly

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Posted By : Nanda Koijam on Fri, 20 Oct 2017
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