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GMS weekly report on ship breaking industry for WEEK 45

Steel News - Published on Tue, 09 Nov 2010

A limited number of vessels were granted NOCs (No objection Certificates) this week, by the DG of shipping in Bangladesh. Based on the reported number of vessels at anchorage, the market should expect to see at least 14 vessels hitting the beaches of Chittagone, during the upcoming beaching tide.

17 yards load been inspected and approved by the Bangladesh environmental ministry last month and with the progress made so far this week the industry appears to be moving closer to reopening after having been out of action for the last 6 months.

Of course, there will be no resting easy until the physical beaching of these 14 vessels takes place, but the signs at this stage are promising. There is some suggestion locally that no more NOCs will be issued for the time being, so if a reopening is to occur off the back of this week\'s activity, it will be a case of slowly but surely.

With yards almost completely empty and starved of tonnage over the past six months, some big prices were seen mostly for \'as is\' tonnage of various cash buyers that included Suezmax and Aframaxes tankers and Capesize bulkers the largest units on offer. Whilst the USD 500/LT LDT mark has yet to be breached, USD 475 to 4S5/LT LDT was there for most tankers with dry units being USD 30 to USD 40/ton behind. No new vessels could be committed for the time being and it will be a waiting game to see whether this week\'s developments could be translated into reality.

The big new sales for the week took place into China as one Capesize bulker and one Suezmax oil tanker have both made their way from local owners, direct to local yards for competitive prices. Pakistan struck back with one purchase at extremely firm levels after a recent slow patch and lastly, India cooled off somewhat with Diwali holidays underway and local recyclers taking a well deserved break from the action.

For week 45, GMS demo rankings for the week are as below:

CountryMarket SentimentGEN CARGO PricesTANKER Prices
IndiaCautiousUSD 425/lt ldtUSD 460/lt ldt
PakistanSteadyUSD 420/lt ldtUSD 450/lt ldt
ChinaBullishUSD 400/lt ldtUSD 420/lt ldt

(Sourced from GMS Weekly)

Posted By : admin on Tue, 09 Nov 2010
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