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GMS Market Commentary on Shipbreaking in India in Week 19 - SALES STORM!

2018-05-16

The Indian market witnessed a far more busy time this week – both in terms of green sales and in terms of specialist units being committed to Alang Buyers. The much anticipated sale of the 6 Varun LPGs was finally concluded this week and the units were eventually sold after the second auction generated a healthy interest from several parties. The vessels were reportedly concluded at about USD 361/LT LDT basis an ‘as is’ Kochin and ‘as is’ Kandla delivery.

The VLGC M. BHARDWAJ (17,117 LDT) was concluded basis an ‘as is’ Kochin delivery whilst the rest of the comparatively smaller (in terms of lightweight) LPGs i.e. M. SHUBHATREYA (14,291 LDT), M. DEVATREYA (11,363 LDT), M. BHAVATREYA (11,313 LDT), M. KRIHNATREYA (11,211 LDT) and M. MAHATREYA (11,306 LDT) were all sold on an en bloc ‘as is’ basis at Kandla.

Lastly, as mentioned in the Market Commentary above, the VLCC RIDGEBURY PIONEER (42,420 LDT) was committed basis an ‘as is’ Khor Fakkan delivery with Sellers making the vessel “gas free for man entry” only. The sale was also concluded with about 300 Tons of bunkers included in the sale. Despite being able to obtain substantially more for the vessel, Owners opted to leave money on the table and conclude the sale basis HK SoC green recycling, for which, the owners MUST BE LAUDED. Owners still managed to obtain a decent price of USD 408/LDT.

On the domestic fundamentals front, although local steel plate prices continue their weekly wobbly dance, the Indian Rupee continues to take a beating as it gradually approaches the INR 68.0 mark against the U.S. Dollar.

Source : Strategic Research Institute, SteelGuru