The much-anticipated news of the Pakistan budget was at last forthcoming this week and overall, the first assessment has come back positive.
Considering that local recyclers were expecting a 4% increase in taxes, it was a welcome surprise to see a marginal increase in general sales tax from 16% to 17% and an increase in duty from 0% to 1% (a total 2% increase). At the same time, taxes affecting the domestic steel industry were re-adjusted thereby negating the increase, which could have reduced prices for ships by about USD 7-8/LT LDT.
As a result, cash buyers decided to speculate on new tonnage once again, with two particularly interesting sales concluded.
The Goulandris controlled suezmax tanker VENETIA (22,344 LDT) was confirmed for an astonishing USD 438/LT LDT gas free for man entry only, basis 'as is' Singapore with about 250 T bunkers. After delivery costs are taken into account, the final resale price harks back to the optimistic levels of last month (although the vessel is reported to be in exceptionally good condition).
Cido also sold their VLOC PACIFIC BEAUTY (39,950 LDT) for an excellent USD 425/LT LDT. The vessel was converted from VLCC in China in 2008 and is exactly the type of high profile and high LDT tonnage that Pakistan buyers have been targeting of late.
Source: steelguru. 18 Jun 2013