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GMS Market Commentary on Shipbreaking in Bangladesh in Week 28 - STAGNANT!

Steel News - Published on Wed, 17 Jul 2019

Image Source: Barcroft TV
Despite several deals in recent weeks that seemed to suggest a Bangladeshi return to form, the market in Chattogram remains contradictorily stagnant this week, with very few open Buyers willing to seriously negotiate and banks reportedly unwilling to sanction new L/Cs, as local Recyclers with tonnage being delivered are starting to play games once again. It may be some weeks before we receive news on the BSBA challenge to reverse some of the increased taxes / duties and the 10% VAT announced on the ship recycling industry via the annual budget on June 13th.

For this reason, and also given that many yards are still stuffed with a multitude of high-priced and large LDT vessels sold so far this year, it may be an overall quieter summer in Bangladesh (in terms of pricing and demand).

The recent slowdown has also made itself evident via the extremely diminished number of arrivals at Chattogram anchorage this week, where only 3 vessels are awaiting delivery.

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Posted By : Ratan Singh on Wed, 17 Jul 2019
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