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GMS Market Commentary on Shipbreaking in Bangladesh in Week 29 - STRUGGLING!

Steel News - Published on Tue, 23 Jul 2019

Image Source: National Geographic
Ever since the announcement of the budget on June 13th, Bangladesh has endured a rather difficult time ever since. Increased VAT to the tune of 10% has set the industry back by about USD 25 – USD 30/LDT. There have been very few Buyers open and available to take in new vessels, especially with the large amounts of tonnage already occupying local plots. Further aggravating the local situation has been an overall unwillingness of local banks to sanction new and (potentially large U.S. Dollar value) L/Cs.

While it is expected that it might take another few weeks (or even months) before the BSBA manages to overturn the recently increased VAT (if at all) and demand subsequently returns to anywhere near pre-budget / summer levels, in the interim, it will be a waiting game for many in the industry looking to offload some of the recently acquired expensive units.

NO MARKET SALES REPORTED

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Posted By : Ratan Singh on Tue, 23 Jul 2019
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