03 January 2012

GMS weekly report on BANGLADESH shipbreaking industry for week 52 of 2011:

With no change to the status quo and very few end buyers willing to commit on new units until the market gets the official green light to import vessels once again, it has been a quieter than usual Christmas in Chittagong.

Subsequently, most vessels have been diverted into the hands of Pakistani (the Indian currency crisis has seen WC Indian buyers slide from the picture of late) or Chinese buyers (with rates picking up there, the Chinese have become a real threat to the dominance of the sub continent in acquiring market tonnage).

All going to plan, Bangladesh should come back online to acquire tonnage in the second half of January (after the hearing of Jan 12th). This should act as a much-needed tonic to assist a sector that is currently struggling from a dramatic slide in prices and demand (particularly in the sub-continent). However, as we have seen far too often in the previous few years, what should happen very rarely guarantees what does actually happen in the Chittagong market.

Going into 2012 then, the waiting game continues

Source: Steel Guru (Sourced from GMS Weekly). 3 January 2012

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