12 October 2011

GMS weekly report on BANGLADESH shipbreaking industry for WEEK 40 of 2011:

  • Distinct disinterest
  • No worth speculation
Bite the Bullet !!

Buyer sentiment this week showed few signs of improving with a number of vessels at outer anchorage still unsold and yet more high priced high profile deals arriving locally. Much to everyone's surprise, there remained little no sign that end buyers would be willing to pay anywhere near the prices that cash buyers would be demanding, even to breakeven on their deals.

Tanker Pacific's M/T JAVA SEA (16,134 LDT) was finally sold for USD 545/LT LDT basis a guaranteed Bangladesh delivery, gas free for hot works a sale into a market that has yet to officially certify its extension past the October 12th deadline. Likewise the tween NORMAX SPIRIT (6,090 LDT) was sold for a guaranteed Bangladesh delivery for L1SD 515/LT LDT. Truly speculative moves on part of the negotiators.

Meanwhile, a draft of the Rules and Regulations of Shipbreaking in Bangladesh were released recently. The Government has announced the creation of a one stop Ship Building and Ship Recycling Board service under the Ministry of Industries that will be responsible for monitoring the import of ships for recycling in Bangladesh.

The draft covers the following for the domestic recycling sector:

1. Provide for the standards, measures and precautions to conduct the recycling process in a sate and environmentally sate manner

2. Set out clear responsibilities for Sellers, Cash Buyers, and respective Yards

3. Conduct the relevant inspections and surveys

4. Highlight the methods for safe disposal of hazardous waste

5. Set out a standard for the training, safety and general welfare of the workers and recourse for them in case of any accident or emergency and have examples of the plans that need to be submitted by the yard

6. Create application forms for the relevant parties

The SBSRB and the rules together are a one stop and all encompassing guide to the entire ship recycling process in Bangladesh.

Market sales reported:

Vessel name
Reported price

Source: Steel Guru (Sourced from GMS Weekly) 11 October 2011

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