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GMS Market Commentary on Shipbreaking in Bangladesh in Week 46 - LC STRUGGLES!

Steel News - Published on Tue, 20 Nov 2018

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Softening local steel plate prices and worries surrounding rumors of a potential depreciation of the Bangladeshi Taka have united with a shortage of U.S. Dollars in the country, leading to a chronic shortage / inability of end Buyers to open fresh L/Cs on proposed tonnage.

Upcoming elections over the next month may also cause local disruptions, with many end users preferring to wait for the outcome before offering on any new units.

As such, being the only market whose levels are (surprisingly) holding up (although a degree of softening is permeating through local offerings), this has become a major concern for Cash Buyers who are sitting on a multitude of unsold expensive vessels in their inventories.

At least some good news emerged from Bangladesh (as reported in GMS’s circular this week) where a hospital ship controlled by NGO “Friendship” was beached at a Rina approved HK SoC compliant yard in Chittagong. It is certainly helpful to the industry where improved local standards are finally being recognized by the international community and ship Owners at large.

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Posted By : Nanda Koijam on Tue, 20 Nov 2018
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