09 September 2014

GMS weekly report on Bangladesh ship breaking industry for WEEK 36 of 2014:

Bangladeshi buyers continued to witness juicy vessels eluding their clutches – even those coming from locations in the Far East. Whilst buyers have failed to deliver on price in recent months, demand and capacity remains rampant, with many yards having been empty for quite some time.

A slow and steady improvement in local steel plate prices this week (up by as much as USD 7-8/LT LDT) has seen Bangladeshi prices inch up marginally.

Chittagong buyers however, continue to struggle with their Indian sub-continent counterparts. With much of the existing inventory (steel, non ferrous and other materials) not shifting from yards due to a slowdown in development projects (in part due to the massive flooding seen this monsoon), prices are not expected to pick up significantly any time soon.

One sale however was concluded, with the RoRo MPP type unit ATLANTIC TRADER (8,840 LDT) sold for over USD 505/LT LDT. The car decks on board usually find buyers keen to pay a premium as the steel from the decks (on PCCs in particular) is often rerolled to aid the construction of smaller coastal trading vessels.

Source: steel guru. 9 September 2014

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