Market tempest aside, it
has been a controversial month or so in the Indian sub-continent recycling
industry. The circulation and resales of up to eight Iranian VLCCs under questionable
conditions and payment schemes have left many scratching their heads as to the
control that governing bodies have on limiting the import of such contentious
assets.
Quite why the Indian
ship-recycling authorities have upheld the validity of up to two VLCCs so far
concluded into Alang, despite rigid US and European sanctions and embargos in
place, remains a mystery. Talk of non USD payment transfers to accounts in the
Far East merely serves to complicate an already dubious transaction.
With 2 units having
arrived into India, one into Bangladesh, and at least 5 more VLCCs set to
arrive in the near future, is it not time for the industry to take a long hard
look at what constitutes a legal and appropriate delivery/transfer of
ownership?
It appeal little was
done in regards to the potential arrest of the first KTTC vessel that arrived
Alang, as the vessel was eventually delivered and beached.
The fact remains, as has
been demonstrated in the past few years alone, that dealings with Iranian
interests will most likely lead to greater sanctions/reprisals further down the
line. What are the Indian and Bangladeshi authorities doing in terms of
background checks and due diligence?
Sadly, it seems, as is
too often the case, that the lure of hard cash has overcome even the most basic
of principals, flouting international sanctions in the process.
For week 31 of 2013, GMS
demo rankings for the week are as below:
|
Country
|
Market
Sentiment
|
GEN
CARGO Prices
|
TANKER
Prices
|
|
Bangladesh
|
Weak
|
USD
375/lt ldt
|
USD410/ltldt
|
|
India
|
Weak
|
USD375/ltldt
|
USD410/ltldt
|
|
Pakistan
|
Weak
|
USD
375/lt ldt
|
USD410/ltldt
|
|
China
|
Bullish
|
USD
325/lt ldt
|
USD
340/lt ldt
|
Source: Steel Guru. 6
August 2013
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