A real lack of capacity began to tell this week in Bangladesh, with fewer overall offers and enquiries emanating from a market that has been in overdrive this past few months.
Deliveries and beachings continue at pace as yards continue to fill up at a rate of knots. Capacity though has been the killer in Bangladesh before, and with the Indian woes continuing for another successive week, there is only so much Chittagong buyers are able to exploit the current levels and pick up the odd bargain.
Chinese owners XASCO sold another of their older bulkers with the SIN OCEAN (7,600 LDT) going for USD 375/LT LDT (plus inward clearance costs for buyers), in the only firm market move of the week. Nasco have sold several older bulkers already this year for recycling with more set to come, from a fleet profile etched very firmly in the 1980s.
With a lack of discemable competition (China prices falling and WC India - Pakistan levels still struggling through currency and local steel price issues), there is some doubt as to just how long current levels in Bangladesh can hold on as corrections may indeed, once again, be just around the corner..
Source: Steel Guru (sourced from GMS Weekly). 25 July 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_29_2012/275144.html