04 March 2015

GMS weekly report on Bangladesh ship breaking industry for WEEK 09th 2015

Having endured a rough few months of constant steel price falls (amidst a fresh batch of imported Chinese billets immediately prior to New Year), Bangladesh buyers began to search for any glimmers of stability, in order to justify a return to the buying.

A positive Indian budget would be one step to encourage end users, along with news on a halt (or at least slowing) of the cheap Chinese exports. Political instability that has gripped the country during the start of 2015 has unfortunately showed no signs of slowing as a new wave of strikes is reportedly ongoing.

Meanwhile, sales of two panamax-sized bulkers at USD 360 per LT LDT benchmarked the lower overall levels on show. The EKRAM M (9,700 LDT) and the Chinese controlled RUI FU FA (9,711 LDT) both fetched USD 360 per LT LDT as the first market sales in the recent past.

Bank limits are also proving to be a problem for many buyers with limits not being approved due to the tremendous losses sustained by most end users (by almost 25%) due to market falls over the past 6 months or so.

Source: steel guru. 3 March 2015

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