18 December 2012

GMS report on Bangladesh shipbreaking industry for WEEK 50 of 2012:

As select buyers emerged for specific tonnage largelv the cape size bulkers and suezmax tankers/VLCCs vessels with 20,000 LDT and over, a whole raft of candidates either discharging in the area or coming from the East were mostly ignored, even at much lower levels.

These included, for the most part, older handy size bulkers discharging clinker in Chittagong poor cargoes, ownership, age and condition meant that most end buyers were simply unwilling to put them on their plots with other, more attractive option available to them.

On that note, there were rumors that the bulker ATTRACTIVE (7,46S LDT) was sold for a decent USD 40S.50 per LT LDT only for that deal to fail after the relevant cash buyer was unable to find an end buyer to beach the vessel.

Now more than ever, it has become imperative to find end buyers to take vessels before committing to a purchase, given the constant supply of tonnage in the market. Even those vessels considered to be favored units may garner no interest which has led to great frustrations amongst all cash buyers in the sub continent.

Mixed in with LC delays and new personnel handling NOCs for vessels to proceed inwards to beach, it has become a very challenging time in Bangladesh. Owners should now be prepared for greater waiting time/patience off the back of this.

Market sales reported -

USD 408.5/LT LDT

Source: Steel Guru. 18 December 2012

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