Having taken a number of vessels last week – handysize bulkers discharging clinker in Chittagong it was a quieter week for local buyers who seemed unable (perhaps unwilling) to compete with the rampant showings in both Pakistan and India.
Despite steady fundamentals in both scrap steel prices and the currency, Bangladesh buyers were simply not able to compete on large LDT container and tanker units at levels of close to USD 500/LT LDT (and excess) and subsequently missed a number of juicy units, some even proceeding from the Far East.
Demand is yet to fully reload, with many end buyers having taken units in the early part of the year (capesize bulkers, tankers and containers) and yet to completely clear their yards before emerging at the bidding tables once again.
Moreover, with monsoon season and budgets all approaching, it may be that the Bangladeshi market may not fully fire once again until after the summer months.
Source: Steel Guru. 15 April 2014http://www.steelguru.com/international_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_15/336870.html