11 June 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 23 of 2013:

The much anticipated Bangladesh budget of Time 6th brought with it (as expected and is often the case) very little material change for the ship recycling industry. On the surface it is verv much 'as vou were' for end buyers who will see no new taxes imposed on new or existing ship purchases.

In the immediate aftermath of the announcement, there was no great binge on units or improvement in prices for ships. It may likely take a few more days to understand and digest the budget in its entirety, but despite the relief on avoiding such prohibitive levies / taxes, the response on demand / pricing has so far been anemic.

Deals continue to be done at lower overall levels as the Vietnamese owned bulker SOUTH STAR (8,920 LDT) was supposedly sold for USD 410/LT LDT (although there is some doubt as to the credibility of this deal).

The Taiwanese owned panamax bulker GEMMY (11,046) fetched USD 385/LT LDT 'as is' Kaohsiung with about 300 T bunkers ROB upon arrival (with most likely end destination Bangladesh with vessel coming from the East).

Source: steel guru. 11 June 2013

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