15 May 2013

GMS weekly report on Pakistan ship breaking industry for WEEK 19 of 2013:

The political situation took centre stage in Pakistan this week with national elections taking place mid-week for Nawaz Sharif (leader of the Pakistan Muslim League) to declare an (as yet) unofficial victory at the polls.

Combined with the upcoming budget of June 10th, most end buyers preferred to wait and watch government moves and initiatives before committing on a lot of the new and expensive tonnage flooding the market from cash buyers.

One of the most interesting deals of the week saw the dirty FSU (ex VLCC) unit from Singapore based Chinese owners, SOUTHERKPEC 5 (34,534 LDT) concluded for a price believed to be region USD 435/LT LDT 'as is' Singapore with only 250 T bunkers remaining on board. Due to the fact the vessel has been operating as a storage tanker (and a large amount of slops / sludges will therefore remain on board), it is unlikely she will be made gas free for hot works clean for either Indian or Bangladesh, making her a clear Pakistan candidate. There is also speculation however that the deal may have been concluded by a certain cash buyer with a storage project in mind before the vessel eventually heads for recycling.

Source: Steel Guru. 14 May 2013

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