28 April 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 16 of 2013:

After the excitement from earlier weeks, seeing several capesize bulkers and a VLCC concluded locally, the Bangladeshi market witnessed favored tonnage bypass the shores of Chittagong on towards Pakistan, resulting in an overall quieter local week.

Concluded at USD 454.50/LT LDT, the Korean owned VLCC G. GLORY (39,205) was perhaps the most interesting sale last week (gas free for hot works), the price likely being attributable to a pre-budget (June 6th) delivery.

Presently, it does appear that no Chittagong buyers are willing to consider vessels for post budget deliveries, for fears that potential increases in duties / taxes on purchases could affect vessels arriving at later dates.

Meanwhile, strikes and banking issues (particularly for untried and tested new end buyers) persist in the country - sometimes slowing local deliveries to a crawl. Overall, Bangladesh is lagging a touch behind their Indian and (in particular) Pakistani (who bid on the same sort of tonnage) rivals meaning several vessels have been bypassing Chittagong shores of late.

Source: Steel Guru. 24 April 2013

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