The three VLCC sales from last week, which
included Dr. Peters VLCC the DS VADA (42,972 LDT), Eastern Pacific’s MARITIME JEWEL
(41,732 LDT) and the Tsakos controlled MILLENNIUM (41,827 LDT), all of which
were the last of the leviathans that managed to capture peak market levels of
2018 thus far. This week however, working (wet) units have all seen offerings
anywhere between USD 10 – USD 15/LDT lower.
As a result, most Owners have been reluctant
to negotiate / conclude their vessels at these sudden and unexpectedly lower
levels, such has been the ferocity and extent of the (speculative) market
improvements / offerings over this past month or so, where a number of VLCC
Owners have seen recycling prices border on further trading levels as most Cash
Buyers speculatively negotiated units with the anticipation of a Pakistani
reopening.
Notwithstanding, even if prices were to settle
USD 15 – USD 20/LDT (if this is where prices eventually settle) below recent
peaks, it certainly cannot be construed as much of a decline as levels are
still some at of the highest we have seen over the last few years.
Overall, demand has (expectedly) started to
dampen given that all of those units concluded basis a Pakistan reopening,
gradually are and expected to end up in Bangladeshi hands as Indian recyclers
remain reluctant to match Bangladeshi levels for large LDT tankers.
Accordingly, on the back of a plethora of
recent (market and private) resales into Bangladesh and Chittagong Recyclers
becoming acutely aware of further units coming their way, we anticipate this is
expected to play into their hands in the weeks ahead and help them grab a comparatively
cheap deal (or two).
Source:
steel
guru. 28 March 2018
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