Pakistan prices have been less than satisfactory (and indeed realistic) for some time now, despite local fundamentals remaining mostly steady.
With end buyers buying into rumors of several juicy large LDT vessels destined for Gadani shores, a cartel of buyers has emerged hoping to keep prices artificially low. The fact that the purported vessels have yet to arrive or be sold anywhere near such unrealistic numbers has only served to backfire on those end users seeking their bargains.
The one deal done saw the Cyprus Maritime controlled panamax bulker PRINCESS NATALIE (9,161 LDT) committed for a speculative USD 465 per LT LDT. The forward delivery in January 2015 with 200 T bunkers guaranteed to remain on board helped to achieve such a price and the WC India buyer’s option also gives some flexibility on the resale.
Source: steel guru. 3 December 2014