13 March 2012

GMS report on BANGLADESH shipbreaking industry for WEEK 10 of 2012:

Bangladesh is a market under pressure at present- Under pressure from expectant owners wanting to see a return to 'business as usual' and hoping for swift deliveries, beachings and balance payments.

Under pressure also from expectant cash buyers, who have filled their books with overpriced tonnage and are hoping to see some pick-up on the price, just to breakeven.

The reality is, and as detailed in previous reports, that it is taking far longer to put all the necessary paperwork in place needed to deliver vessels. Moreover, the lack of finance and credit in the industry (with banks so far unwilling to loan) is seriously hampering onward sale efforts.

Prices too have so far proved disappointing with many in the industry talking down rates despite a relatively firm demand. Many end buyers have so far been looking towards the Indian budget on 15th March, where they are expecting prices to fall further still.

Source: Steel Guru (Sourced from GMS Weekly). 13 March 2012

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