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GMS Market Commentary on Shipbreaking in Bangladesh in Week 24 - SPECULATIVE SALES!

Steel News - Published on Tue, 18 Jun 2019

Image Source: Japan Times
Most Bangladeshi yards remain stuffed with tonnage, following an incredibly busy first half of the year, as most of the large LDT Panamax containers, tankers, Capesize bulkers and VLOCs have ended up on Chattogram shores. However, with the rumors of impending taxes and duties in the lead up to the budget, interest in post-budget units all but disappeared. Additionally, with the week of Eid in celebration and the local market off for the entire week, resulted in a local port position that’s virtually barren – an uncommon occurrence in Bangladesh for much of 2019.

Although it has been a period of inactivity in Bangladesh with all in the industry eagerly awaiting the budget announcement in order to gauge the immediate outcome on prices over the next few months, the fine print is still being evaluated in order to determine which direction prices will move.

Yet, despite the uncertainty, certain Cash Buyers seem prepared to speculate on a positive Bangladesh market moving forward, as evidenced by the conclusion of two Sinokor containers that fetched massive prices this week.

The HONG KONG BRIDGE (16,317 LDT) and ROTTERDAM BRIDGE (16,481 LDT) achieved a well above market level of USD 472/LT LDT and USD 484/LT LDT (the latter with a spare propeller onboard) for a delivery into the sub-continent range, whilst the MR tanker BRILLIANT (8,450 LDT) received a comparatively decent USD
421/LT LDT basis an ‘as is’ Singapore delivery and about 200 Tons of bunkers included in the sale.

Only the weeks ahead will tell if these massive prices were well worth the punt.

BRILLIANTTanker8450USD 421/LT LDT ('as is' Singapore, Vietnam with 200 Tons bunkers ROB)
ROTTERDAM BRIDGEContainer16481USD 484/LT LDT (with spare propeller)

Source :

Posted By : Ratan Singh on Tue, 18 Jun 2019
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