29 May 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 21 of 2013:

A drop in sentiment and interest to buy has coincided with falling local steel plate prices and the upcoming budget. Very few enquiries to buy have been emerging over this time and it appears that most end buyers are content to digest what vessels they have on their plots, before seeing what the budget of June 6th has to offer.

There was one interesting potential sale for the week as the HMM owned VLCC UNIVERSAL HOPE (40,970 LDT) reportedly found a buyer at a massive USD 435/LT LDT 'as is' Ningbo, North China with approximately 1,200 T bunkers remaining on board at the time of delivery.

Owners were to deliver the vessel "gas free for hot works clean" in Julv, but owing to weakening sentiment across all recycling markets (and few positive signs of imminent recovery on the horizon), there are some doubts as to whether she was concluded to a demo buyer at all (unless the concerned party is intending on taking an extreme gamble, given the fixing price).

In light of this, perhaps a Chinese trading / storage buyer picked her up at demo related levels (surveys are not due for several years vet). It will be worth keeping a keen eve on this deal in the coming weeks as the true story on the sale emerges.

Source: steel guru.  28 May 2013

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