There was an overall confidence in the market that the longed for extension could be in place as early as next week. Another hearing is set for 17th October and the fate of any incoming and waiting vessels could be decided by then.
Certain cash buyers, in guaranteeing a
delivery, have played a risky game recently when the court order to import
vessels again was yet to be fully put in place or even signed by the judge. The
last time the industry was faced with such a dilemma, it took nearly 2 months
for the judge to sign off on the order and cash buyers were left facing
significant waiting times subsequently taking over many arriving vessels
However, delays have become an inevitable reality for many vessels arriving local anchorage at Chittagong as banking problems/delays, over-extended market prices, and subsequently/ tides being missed due to the faltering procedures, have alls made it challenging for cash buyers and ship owners alike, when arriving Bangladeshi waters.
Finally, the lack of sales for the week reflected the overall uncertainty of many market players, not only in whether an imminent extension would be granted, but also on the price, as cash buyer levels continue to remain disconnected from prevailing local prices
Source: Steel Guru (Sourced from GMS Weekly). 19 October 2011