Ship breaking industry tottering on the verge of revival

After the nearly two months debacle in international scrap prices the recycling industry has heaved a sigh of relief in the last fortnight. The international levels witnessed notable firming up for the second week in a row. Corollary the shipping scrap market in India has shown some semblance revival in the last 10 days. The current pattern is reminiscent of the buoyancy in early 2010 although it is still far removed from stability.
Currently market levels remain at USD 380 per LT to USD 385 per LT for general cargo and USD 410 per LT for tankers. One sparkling transaction of LPG SOMERSET at dizzying USD 430 LT last week cannot be considered as the trend.
The gravitation factors of ever plunging Baltic Dry Index owing plummeting iron ore demand from China and monsoon yet to declare its result there is ambiguity writ large. Moreover with Bangladesh being out of the market supply is likely to be aplenty keeping the knob on the prices.
Cash Buyers have paid unexpected high prices for some of the recent fixtures. The million dollar question is that will the markets in fact climb enough to ensure/protect the deals done at these levels, which as of today remains anyone's guess.