19 June 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 24 of 2013:

As levels on dry vessels tumbled well below the USD 400/LT LDT mark, there has been a relative dearth of sales into the Bangladesh market of late.

The recent "non-event" of a budget that saw no changes / new taxes imposed on the ship-recycling sector, has not vet had the positive impact on prices that many were hoping for.

Indeed, Chittagong buyers saw two of their favored types of vessel bypass the market altogether this week to head to Gadani shores (as has been the form of late). The high LDT Suezmax tanker VENETIA and VLOC PACIFIC BEAUTY were both positioned in the East and vet have ended up making the longer voyage to Pakistan due to the relatively poor prices on show in Bangladesh.

One sale that was concluded for the week saw the Hanjin of South Korea controlled gearless bulker HANJIN PITTSBURG (8,123 LDT), that was committed for a strong USD 372/LT LDT 'as is' Hong Kong with 120 T bunkers included in the sale. Whilst there is no guarantee the vessel will eventually end up in Bangladesh, the high price, lack of bunkers and proximity to Chittagong all mean she is likely to end up there.

Source: steelguru. 18 Jun 2013

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