22 October 2013

GMS weekly report on Pakistan ship breaking industry for WEEK 42 of 2013:

With Eid holidays fully underway this week, it was difficult to get any sense out of end buyers buying sentiment and local prices. On the whole there was very little competing with the rampant Indian market either but for tankers (especially VLCCs), gas free for man entry only, Gadani buyers held a distinct advantage.

The sale of the Embiricos controlled DELOS (42,318 LDT) was one such case in point, with the vessel committed late in die week for an incredible USD 435/LT LDT (less comms). No VLCC has been sold locally above USD 420/LT LDT recently, so this is an extremely speculative move by the concerned cash buyer.

It will be interesting to see how the market opens up Post Eid and whether Pakistan can once again become competitive with India for vessels heading to the sub continent.

Source: Steel Guru. 22 October 2013

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