As Bangladeshi end buyers started to savor the prospects of acquiring cheap VLCCs despite the risks associated with the Iranian connections trouble ensued this week as the first Cambis controlled unit arrived Bangladesh, only for the Hong Kong Dollar LC (Letter of Credit) being reportedly rejected by the associated intermediary bank.
It is going to be quite a challenge to import these controversial units without alerting international governing bodies who will, no doubt, be dismaved to see sanctions breached with the deliverv of the first two units, already into India. The bargain prices may be attracting certain buyers to the units in the first place, but the multiple risks and threat of sanctions serves as a serious warning to potential purchasers.
With Eid holidays due to commence in earnest next week, it has been an overall quieter period of time in the Bangladeshi market as steel prices and demand softened to leave levels stranded well below USD 400/LT LDT on most vessels. Time will tell whether the end of Eid and a stabilizing of the Indian crisis will bring an end to a turgid quarter of pricing.
Source: Steel Guru. 6 August 2013http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_31/321214.html