- Distinct disinterest
- No worth speculation
Bite the Bullet!!
A distinct disinterest on incoming units has typified the Bangladeshi market for a few weeks now despite the assertions failing presumptions of many cash buyers that the market would pick up pre deadline of October 12th 2011.
The truth is that many yards remain stuffed with previously delivered tonnage and the local steel prices are not reflecting the purchase levels of vessels being presently negotiated. Moreover, as cherry picking for units continues locally, the prices on offer appear to wildly fluctuate from levels ranging from region USD 490 to slightly above USD 500 per tonne on the dry side.
On the other hand, recently surfaced rumblings indicate that the market extension many are seeking could be in place within this week, once the judge sits down to view the appeal that has already been put forward. Until that time, it does not appear to be worth speculating or even expecting the market to stay open, as historically has the case, it was a full two months before the order was signed and business could resume as normal for the local market.
For the time being, a number of vessels remain outside port limits due to the disappointing prices on show, with some tough decisions needed on whether to hold of bite the bullet for some considerable losses.
NO Market Sales Reported
Source: Steel Guru (Sourced from GMS Weekly). 04 October 2011