Brokers report that the government crackdown on 500 and 1,000 rupee notes which are no longer legal tender is changing the local shipbreaking scene.
Clarksons Platou reports that recyclers are finding it difficult to resell beached units to the local tradesmen, as they have always worked on a cash basis. The new currency rules have shocked the country and many banks have struggled to handle the ruling and subsequent rush by locals to change notes. The broker reckons the currency change has ultimately led to local prices for ship recycling to fall by $15 to $20 per ldt behind their neighbouring rivals, a trend which could remain into the new year.
