GMS weekly report on BANGLADESH shipbreaking industry for WEEK 26 0f 2011:

Word has been rife in recent weeks that the expected market closure in Bangladesh might not be enforced come July 7th. The next week should be critical in ascertaining whether a market extension will be in place; meaning sales, beaching and deliveries might be able to continue for the coming months.

As such, many cash buyers have been unwilling to commit to new tonnage for Chittagong delivery and until news of a market extension is made official, it is unlikely that many buyers will be taking risks on deliveries there.

There were several (off) market sales for the week that suggested certain cash buyers had confidence that a market extension could well be granted this was by no means the signal to cany on as if the market were open though. One vessel, M/V CAPE GULF fetched a handsome "as is" offer of USD 497/LT NET LDT with about 1300 tonnes of IFO on board at the time of delivery. Given the level of the fixture, it's clearly evident that the cash buyer has taken a punt basis Bangladesh delivery.

Source: Steel Guru. (Sourced from GMS Weekly). Wednesday, 06 July 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_26/213023.html