The number of market deals concluded by brave cash buyers had nothing to do with a market sentiment that was tumbling by the day - even in light of the overall relatively positive news of the June 7th budget announcement.
The number of vessels arriving, stuck and stumbling, and finally beaching, continues to confound locally in Bangladesh and there are simply is, no longer, any keen buyer able to speculate on a market mat has been plummeting for a number of weeks now.
A USD 100/lt ldt softening in the space of a few short weeks is the stark reality and those deals concluded some time ago are starting to look extremely painful for cash buyers, even if an end buyer is in place, especially as discounts/renegotiations are being regularly witnessed under current market conditions for even the smallest discrepancies.
The budget announcement came and went this week with little fanfare and few material changes to concern end buyers. A smaller than expected duty increase of 200 Taka/Ton (about USD 2.5/Ton) on incoming vessels is being reported and those that had imported units earlier can feel only slightly relieved to have avoided paying more for their incoming purchases.
On the flip side, advance tax has been reportedly reduced by about USD 1200 Taka/Ton (about S14/Ton). While the overall outcome should have been positive, the persisting decline in local steel plate prices coupled with the seemingly indelible/negative local sentiment has ensured prices remain weak.
Source: Steel Guru (Sourced from GMS Weekly). 12 June 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_23_2012/268151.html