18 August 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 32 of 2013:

With the VLCC BICAS (ex GLAROS) still facing difficulties locally in gaining permission to beach, the tantalizing prospect for end buvers in acquiring cheap (but tainted) VLCCs, well below market value, came under threat.

The LC payment in Hong Kong Dollars has required the involvement of the US correspondent bank, which, due to US sanctions, have immediately highlighted and put a halt to any transaction involving the purchase of an Iranian linked asset.

Developments in this saga will be watched with interest by all concerned, since the lower levels that many of these contentious (and risky) units are being offered at, is dragging the market further down and affecting the resale of all other cash buyer tonnage.

Meanwhile, despite Eid holidays, one cash buyer decided to speculate on some anticipated bullishness in the market by snapping up the Turkish owned Brazilian built bulker KIRAN ATLANTIC (8,737 LDT) for an impressive USD 395/LT LDT.

Source: Steel Guru. 13 August 2013

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