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GMS weekly report on ship breaking industry for WEEK 8

Steel News - Published on Tue, 26 Feb 2013

A week of relative stability in prices saw an increasing number of owners taking the plunge and selling their units At prevailing levels this week. India, once again, was the most active market - unsurprising, given that they have the broadest selection of buvers able to take all types and sizes and vessels, particularly considering the recently abundant supplv of containers from the German market!

The volatility that has plagued the Indian market for much of this year already (and for large chunks of last year) is still very much in evidence, with the currency once more trading back down at 54 to the US Dollar and steel prices marooned some USD 25/LT LDT down from the peaks of the year.

For this reason, manv of those vessels arriving at Alang that were concluded at previous highs, are either facing or are extremely likely to face issues upon arrival. Already we have seen vessels arriving into Alang and facing hefty renegotiations from cash buyers unable to perform at the agreed levels. The perils of the market are not something that owners should have to deal with if going with strong and reputable cash buyers from the outset.

Bangladesh and Pakistan endured quieter overall weeks with fewer of their more favored units open for sale. The Chittagong market is still a relative newcomer to container purchases (with their pricing still not quite as sharp as India for these units) and Pakistan simply refuses to take containers owing to beaching draft issues. For this reason, despite a comparatively weak market, India has stayed ahead on volumes so far this year.

China was the one market firing on all cylinders once again, following the conclusion of the Chinese New year and the ability to buy at levels approaching those of the Indian sub¬continent. Therefore, most the vessels positioned in the Far East were likely to end up as China candidates, rather than owners facing the risk of bringing their vessels over to the Indian sub-continent with the extreme market volatility still very much in evidence there.

For week 08 of 2013, GMS demo rankings for the week are as below:

CountryMarket SentimentGEN CARGO PricesTANKER Prices
BangladeshCautiousUSD 400/ltldtUSD 425/ltldt
PakistanCautiousUSD 390/ltldtUSD 420/ltldt
IndiaWeakUSD 385/ltldtUSD 420/ltldt
ChinaBullishUSD 375/ltldtUSD 400/ltldt


Source - GMS Weekly

(www.steelguru.com)
Posted By : admin on Tue, 26 Feb 2013
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