There continued to be a steady flow of tankers and offshore units with the former heading mostly to a somewhat subdued Bangladesh, as Indian buyers have picked up on the value that offshore units present.
As reported last week, the fire that erupted on the FSU ‘Aces’ (ex ‘Federal 1’) once again means that we are unlikely to see any wet units heading to Pakistan before the end of the year – a disappointment given that momentum was building up to reopen the facilities to tankers until this recent mishap, GMS said.
Local steel plate prices (especially in India) have gained over $10 per LDT during last week and enquiries have been emerging at increasingly impressive numbers – largely off the back of Moody’s upgrading India’s sovereign credit rating to stable.
India is therefore the market to watch for the remainder of the year, as witnessed by the flurry of activity seen there this week in the containership segment. Local demand is much stronger given the recent minimal activity (except on green and offshore units) that resulted in a largely barren summer for Alang recyclers.
One tanker sale was reported involving the 1999-built Aframax ‘Pacific Singapore’ said to be committed to Bangladesh breakers at $418 per tonne.