GMS weekly report on shipbreaking industry for WEEK 29 of 2011:

An extraordinary week of major gains across all four markets coupled with the announcement that the Bangladesh market had been granted an extension up to October 12th 2011, set pulses racing in the early part of the week.

However, all of that was shattered with the news on Sunday that the Supreme Court in Bangladesh was set to review the extension order once again, amidst furious appeals from BELA. The case is set to be heard on July 28th 2011, and with the political and legal process the way it has been historically/ in Bangladesh, further delays should be expected before the official reopening can be rubber stamped.

Nevertheless, off the back of news that the extension would be granted in the earlier part of the week, some impressive improvements back to the levels of several months ago was seen. India has been bullish for some weeks now and this was another strong week for local buyers in which, several market units were concluded at impressive numbers.

Pakistan and China too have gotten in on the act after a comparatively drab few weeks from their perspective, and it is expected that further movement on price could be on the cards in the coming weeks, especially if the Bangladesh extension is officially ratified.

If permission for the market to reopen in Chittagong is denied or significantly delayed, then it could be a tricky time ahead for cash buyers and owners alike who have committed units to Bangladesh for what many had hoped would be a guaranteed delivery.

For week 29 of 2011, GMS demo rankings for the week are as below:

Country	Market Sentiment	Gen Cargo Prices	Tanker Prices
India	Bullish	USD515/ltldt	USD540/ltldt
Bangladesh	Cautious	USD510/ltldt	USD530/ltldt
Pakistan	Bullish	USD495/ltldt	USD520/ltldt
China	Bullish	USD450/ltldt	USD465/ltldt

Source: Steel Guru (Sourced from GMS Weekly). 26 July 2011

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