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GMS Market Commentary in Bangladesh in Week 11 - DWINDLING ARRAY!

Steel News - Published on Tue, 19 Mar 2019

Image Source: EJAtlas
As Bangladesh continues to absorb a majority of the market tonnage (unless being sold for green recycling or in the offshore sector), industry players have been dealing with the prospect of a dwindling array of aggressive and capable end Buyers, which now appears to be coming to fruition. Last week, as was mildly obvious, a few large LDT containers were sold on an ‘as is’ (even Singapore) basis. However, despite the closer proximity to Bangladesh, they will redeliver into India (See Indian Sales on Page 3), their ‘green recycling’ only option virtually mandating they bypass Chattogram shores.

Despite that, Bangladesh continues to take in its share of units every week.

Large LDT Bulker ORISSA (19,017 LDT) was sold via (Indian) auction on an ‘as is’ Goa basis, at a massive level well in excess of USD 420/LT LDT. Factoring in redelivery costs, this vessel appears to have all of the hallmarks of a Bangladesh resale. Additionally, SPIL of Indonesia concluded their container vessel ORIENTAL MUTIARA (7,591 LDT) at a surprisingly firm USD 468/LT LDT, basis a strictly Bangladesh delivery.

With freight rates showing few glimmers of hope, the supply is expected to continue through the course of the year and this may see prices ease off in the weeks and months ahead, to fall more in line with India and Pakistan in the low USD 400s/LDT.

For now, it seems Bangladeshi Buyers already have their hands full with an Indian market, which, despite its voracious volatility, seems to have bitten out a few choice units out of Bangladeshi hands over the last couple of week, even if it was for strictly green recycling.

Source :

Posted By : Rabi Wangkhem on Tue, 19 Mar 2019
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