06 August 2013

GMS weekly report on Indian ship breaking industry for WEEK 31 0f 2013:

With one VLCC already beached in India (the CARIBO EX NEREYDA, 47,347 LDT) and one (the ATLANTIC EX SEAGULL, 41,320 LDT) set to beach on the upcoming tide, more questions than answers have been raised on the control Indian sub-continent bodies have on restricting the arrival and import of vessels with Iranian links.

Whilst one VLCC has arrived Bangladesh and immediately faced issues with the LC (Letter of Credit), it seems that India (not signed up to the League of Nations) has casually swept any associated issues with international sanctions under the carpet, to proceed with the import of these two controversial units (despite the attempted NITC arrest).

Meanwhile, amidst all the concerns of the incoming VLCCs, Saudi owners BAHRI managed to obtain top dollar once again, on one of their early 80s built full spares Swedish RoRo's as the SAUDI HOFUF (18,578 LDT) was sold for USD 430/LT LDT 'as is' Mumbai, with about 300 Tons of bunkers remaining on board. The Singapore controlled woodchip carrier GREEN FOREST (8,487 LDT) also fetched an impressive USD 407/LT LDT for delivery into WC India.

As both local steel plate prices and the Indian currency struggled to regain a foothold despite a catastrophic past few weeks, many end buyers are choosing either to refrain from bidding on new units' altogether, or picking their purchases very carefully in line with much reduced market levels of today.

Source: Steel Guru. 6 August 2013

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