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GMS Market Commentary on Shipbreaking in BANGLADESH in Week 19 - STUFFED!

Steel News - Published on Tue, 14 May 2019

Image Source: The Japan Times
The appetite for pre-budget vessels has now markedly deteriorated in Chattogram asmost yards have now filled themselves with a healthy majority of high-prices market vessels that were committed for recycling over the past few months and this trend seems to continue on. This week, some interesting news emerged regarding an older ‘en bloc’ sale of a Navios controlled, 2001 built damaged VLCC and a 2000 built Capesize bulker, both of which were reportedly committed at a healthy equivalent of USD 25 million (about USD 435/LT LDT).

The VLCC SHINYO OCEAN (38,220 LDT) was committed basis an ‘as is’ Fujairah delivery whilst the Cape NAVIOS EQUATOR PROSPER (21,740 LDT) was fixed basis an ‘as is’ Singapore delivery (adding to the 20 odd Capesize bulkers sold for recycling thus far this year).

As monsoon, a looming budget and ever-looming pre-budget rumors of increasing taxes and duties make the rounds, local Recyclers turn increasingly cautious and hesitant to bid on any tonnage that is giving a delivery schedule after (or very close to) the budget date of June 13.

As such, a weakening local interest may not entirely be a bad thing as over 180,000
Tons of LDT were beached this week alone, something that is likely to keep
Bangladeshi Recyclers, busy in the months ahead.

Source :

Posted By : Rabi Wangkhem on Tue, 14 May 2019
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