21 March 2012

GMS weekly report on BANGLADESH shipbreaking industry for WEEK 11 of 2012:

Deliveries continued at the prevailing snail's pace this week, with levels very much underwhelming and the lack of finance in the market still chronic.
Many of the open buyers actually able to finance deals have since booked units (at levels well below those on offer in India - Pakistan of late).

Indeed, cash buyers have even positioned their 'as is' units to rival markets so as to avoid the kind of delays (now customary in Chittagong) and probable losses.

It is clear now that inward clearance procedures are taking a minimum of TEN days into Bangladesh (during which time local LCs and bank finances have to be put in place) and any owners looking at cashing in on the quite frankly underwhelming levels should be prepared for same.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

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