As competing markets sank further into the doldrums this week, Bangladesh turned in another impressive showing by committing a number of larger as is units VLCCs and capsize bulkers included along with several private market candidates.
However, there remains a genuine concern in the weeks to come, over the ability of one market to prop up sustain the load of units that are being displaced by the other market.
There has certainly been a keen interest from Chittagong buyers to stock their yards before both, the impending monsoon season and budget of June 10th 2012. It is for this reason that we may have witnessed the last of the aggressive buying from Bangladesh, before a similar malaise to that currently being experienced in India, Pakistan and China sets in.
Each of these markets has had their own problems of late. China has seen steel prices lose ground, India has (once again) suffered badly with currency concerns, and Pakistan (despite tending to follow the move of their Indian competitors) has struggled with capacity as many of the major end buyers having filled their yards with some high priced and large LDT vessels.
Through it all, the candidates still keep on coming as the markets witness a shifting of focus from containers, to the dry side, after a firming of wet rates across the board would expectedly result in a delay in tanker expiry dates.
Indeed, with several capsize bulkers in the market, it could be that the number of available candidates would outweigh the number of capable and willing buyers, leaving owners faced with an unprecedented situation for perhaps the first time in their history.
For week 18 of 2012, GMS demo rankings for the week are as below:
|Country||Market Sentiment||GEN Cargo Prices||Tanker Prices|
|Bangladesh||Bullish||USD 470/lt ldt||USD 490/lt ldt|
|Pakistan||Weak||USD 455/lt ldt||USD 480/lt ldt|
|India||Weak||USD 450/lt ldt||USD 475/lt ldt|
|China||Weak||USD 405/lt ldt||USD 425/lt ldt|
Source: Steel Guru (Sourced from GMS Weekly). 7 May 2012http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_18_2012/262726.html