14 October 2014

GMS weekly report on Pakistan ship breaking industry for WEEK 41 of 2014:

Rumours were rife this week that the Hosco controlled VLCC HEBEI MOUNTAIN (41,660 LDT) had been sold for a price over USD 525 per LT LDT into Pakistan to an untried and somewhat unknown buyer a big risk indeed for such a large LDT unit.

The subsequent decline in sentiment in Pakistan over the course of the weekend (due to continued import of cheap Chinese billets), makes the materialization of any deal significantly less likely particularly as such untested buyers may struggle to put up the rumoured 40% deposit requested by owners.

Having booked many large LDT units before the Eid holidays at firm rates, it may be some time before we see Pakistan buyers back in aggressive purchasing mode and for the first time in some months they have slipped down the rankings behind Bangladesh in terms of pricing and sentiment.

Source: steel guru. 14 October 2014

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