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GMS update on Shipbreaking in Bangladesh in Week 2 - ACTIVE BUT UNDERWHELMING!

Steel News - Published on Wed, 17 Jan 2018

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For a majority of the recent past and in comparison to India and Pakistan, Bangladeshi buyers have been spectators more-so than players, observing the increasingly firming prices from their sub-continent neighbors on the many vessels that have evaded Bangladeshi clutches and gone elsewhere.

These have included traditionally favored Capesize bulkers, Panamax containers and large LDT tankers into India including one VLCC concluded at the end of 2017. As a result, local port position in Chittagong (See Page 8) has struggled with only one new arrival and one beaching this week, making it the least active port in the sub- continent for the week.

Moreover, despite an improvement in local steel plate prices, levels for ships have remained comparatively underwhelming this week. However, it is not all bad news for local recyclers as there are still a lot of large LDT vessels that were beached in the recent past and are still taking up space on local yards, keeping local recyclers busy.

Meanwhile, one speculative Cash Buyer has continued to pay well over the market as this week again, he has paid an extraordinary UD 408/LT LDT for FSU NORTHERN STAR, basis an ‘as is’ Singapore delivery in February with minimum bunkers and gas free for hot works expenses being on Buyers account.

This process could take as much as 6 weeks, resulting in the vessel being an April delivery into the sub-continent. Perhaps the Buyer has decided to take a speculative position on a Pakistan reopening and decided to pay such a massive price. Whatever is the case, unless the markets make significant gains, the Buyer (or the relevant Ship Owner) is likely dressing for a disaster.

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Posted By : Nanda Koijam on Wed, 17 Jan 2018
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