17 June 2014

GMS weekly report on Bangladesh ship breaking industry for WEEK 24 of 2014:

As taxes and duties on new units increased by as much as USD 5 per LT LDT on scrap steel and a massive USD 30 per LT LDT on bunkers, many end buyers chose to sit back and observe the realities of what the budget will yield (and its final ratification) rather than commit on new units.

Furthermore, many end buyers have already been booked with tonnages that were committed at the peak of the market, so local appetite, for the most part, remains subdued.

With constant rains now afflicting the industry, it will be a stop start couple of months in Chittagong as end buyers occasionally emerge with specific demands for news units, and that too, at far lower levels overall.

One sale reported last week, the chemical tanker GLOBAL EMINENCE (2,576 LDT) has not been sold into Bangladesh but rather directly to China, reportedly at levels region USD 330 per LT LDT.

Additionally, the general cargo vessel NEW FORTUNE (2,374 LDT) was committed to Bangladeshi buyers for a relatively weak USD 430 per LT LDT as a new statement on pricing began to show through.

Source: steel guru. 17 June 2014

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