A series of interesting developments in the Bangladeshi market this week saw prices shoot up to some incredible, and (some would say) speculative levels. One particularlv hot buyer, who was over-eagerly relying on a firming market, went on a spending spree at figures well above prevailing market conditions.
The purchase of the panamax bulker GLORIOUS RENA (10,400 LDT), less the usual address commission, was one such case in point. Vietnamese owned bulker SOUTH STAR (8,920 LDT), which too had been committed to the same buyer and was an expensive deal even at the time of its fixture, failed onlv a few days later. Whether GLORIOUS RENA suffers the same fate, remains to be seen.
Optimism is beginning to show locally as steel plate prices rebounded from last month and the currency remains stable. An increasing number of enquiries are emerging for new tonnage, yet the market remains just off what India is paying, and is some way behind the demands of owners and cash buyers, for the time being at least.
Source: steel guru. 8 October 2013