A reversal in not only capacity but also steel prices led to a mini crisis in the Bangladeshi market, with many candidates being proposed but very few end buyers open to absorb those vessels.
Indeed, any numbers that were forthcoming were anywhere between USD 30-40/LT LDT softer than the peaks seen just over a week ago. These falls appear to be almost entirely capacity driven and as such, we do expect prices rebound once some of the more reliable end buyers clear their yards and get back to the table in 2-3 months or so.
Notwithstanding, two market deals were concluded for the week with the panamax bulker FRANCESZCO (11,099 LDT) seeing USD 450/LT LDT and the Sinokor controlled ex OBO CENTRAL CARRIER (14,SS0 LDT) sold for region USD 425/LT LDT 'as is' Singapore with sufficient fuel for the voyage to Bangladesh.
Meanwhile, the high-priced buying frenzy from a few weeks ago became increasingly evident via the number of vessels arriving local anchorage. Chittagong alone is taking in more than double the number and the amount of LDT being consumed by its subcontinent neighbors i e India and Pakistan.
Source: Steel Guru. 22 May 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_20_2012/264862.html