GMS weekly report on BANGLADESH shipbreaking industry for week 01 of 2012:

Several brave (and perhaps foolhardy) cash buyers upped the ante this week by initiating offering on a delivered Bangladesh basis. Confident that the green light to import vessels once again would be given on 12th January, several units were concluded at levels above both WC India and Pakistan.

Some of those units had been discharging in Bangladesh making delivery there logical for owners. However, for cash buyers to plough their confidence into a market that has proved so unreliable in 2011, is still somewhat astonishing and baffling.

We have seen defeat snatched from jaws of victory far too often in Bangladesh to hold any confidence in a definite return to action later this month. Whilst many expect the doors to open once again, the reality is far from ever that simple, especially in Chittagong, where bureaucracy and red tape reign.

Those buyers of the Chinese owned Panamax bulker HU JIANG (11,101 LDT) and handy size bulker XIX HUA (7,382 LDT) will be keeping their fingers crossed in anticipation of the desired result next week. Similarly the KAXG HUA (9,167 LDT) achieved an exceedingly firm USD 493/LT LDT with full spares and 500 T bunkers ROB at time of delivery, as Chinese owners sought to cash in early and face the market risks.

Source: Steel Guru (Sourced from GMS Weekly). 10 Jan 2012

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