21 March 2012

GMS weekly report on BANGLADESH shipbreaking industry for WEEK 11 of 2012:

Deliveries continued at the prevailing snail's pace this week, with levels very much underwhelming and the lack of finance in the market still chronic.
Many of the open buyers actually able to finance deals have since booked units (at levels well below those on offer in India - Pakistan of late).

Indeed, cash buyers have even positioned their 'as is' units to rival markets so as to avoid the kind of delays (now customary in Chittagong) and probable losses.

It is clear now that inward clearance procedures are taking a minimum of TEN days into Bangladesh (during which time local LCs and bank finances have to be put in place) and any owners looking at cashing in on the quite frankly underwhelming levels should be prepared for same.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

GMS weekly report on INDIAN shipbreaking industry for WEEK 11 of 2012:

Following a spate of recent container sales into the WC Indian market (the preferred unit of choice it seems due to decent residual quality of steel and lack of need for gas freeing); it was back to bulker buying with 3 market sales to report.

The converted VLCC ORIENTAL NICETY (34,399 LDT) caught the eye as it was sold for USD 460/LT LDT 'as is' Singapore with approx 300 T bunkers ROB. The USA built ship retained some of the qualities of a traditional tanker after conversion hence the high price on show. At the time of writing, it had indeed been sold into the Indian market at a price usually reserved for tankers.

Two more standard dry units TOFTON (6,741 LDT) and HOANG SON SKY (6,378 LDT) were sold for the going rate of USD 465-475/LT LDT into India.

The results of the budget of 15th March brought very little material change to ship prices. Excise duty was increased by 2% but this had already been anticipated by most end buyers and was far from the worst case scenario that man}' had envisaged on the build up to the announcement.

The amount of tonnage on the market continues to present problems for the market with far more candidates out there than open and aggressive buyers.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

GMS weekly report on CHINESE shipbreaking industry for WEEK 11 of 2012:

After a bumper last few weeks, there were some signs this week of a settling down in terms of price and aggression to buy. Just the two market sales were reported Sea Star ship management of China sold off their Panamax bulkers SEA STAR 7 (13,625 LDT) and SEA STAR 8 (12,111 LDT) for USD 435/LT LDT enbloc with 500 and 800 T bunkers on board respectively at time of delivery.

The fact is that even if vessels have significant bunkers on board upon delivery, the premium for the vovage over to the sub continent is currently only some LISD 25-30/LT LDT. Once owners' factor in delivery costs and waiting time, the potential profits are virtually negligible (especially if there are significant bunkers on board that end buyers in China can cash in on).

Some interesting news for the week concerned the opening of a new ship recycling facility in Dalian, North China a joint venture with Singaporean owners PIL by the end of the year. The yard should be able to take some 70-75 vessels per year and will be of particular interest to those owners with vessels open in South Korea / Japan due to the proximity from there for deliveries.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

GMS weekly report on PAKISTAN shipbreaking industry for WEEK 11 of 2012:

Cherry picking the right units in Pakistan saw fewer market vessels concluded for the week despite the relative deluge that continued to hit the market.

Indeed, China and India have been the busier markets of late as Bangladesh continues to struggle with finance and Pakistan for capacity open buyers.

Those end buyers that are open to buy have the luxury of taking their pick from all those candidates available and are likely to go for those with the best specs and price. As such, cash buyers are approaching even' deal with caution with the onward sale and making sure an end buyer is in place which has become of increased priority in this market as opposed to the speculative buying of the past few years.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

19 March 2012

Environmentalists concerned over electronic waste in Bangladesh:

Dhaka, Bangladesh (AHN) – Environmentalists, academics, researchers and social justice activists on Monday expressed grave concern over the illegal dumping of electronic wastes (e-wastes) in Bangladesh.
The groups have demanded the government formulate an integrated national policy for implementation and monitoring with the participation of the stakeholders.
E-waste is the fastest growing waste stream in Bangladesh and has emerged as a top lucrative business in the country, said Dr. Hossain Shahriar of Environmental and Social Development Organizations (ESDO), an activist group.
Bangladesh is one of the highest e-waste generating countries in the world. It produces 2.7 million metric tons of e-waste. The ship-dismantling industry alone produces 90 percent of the wastes, according to a study by ESDO presented at the capital, Dhaka, on Monday.
An estimated 700 ships reach their final destination in Bangladesh, where they come to be dismantled and salvaged. Wastes from the electronics inside the vessels are produced at the shipyards on Bangladesh’s southern coast.
The ship scrap carries huge volumes of toxic products, as well as electric and electronic wastes, which include neon lamps and light bulbs, light switches, hundreds of miles of electrical wires and tons of cables, in addition to kitchen and laundry appliances, television monitors and computers.
The tradeoff and trans-boundary movement does not address the critical environmental, social and economic impacts on an impoverished nation of 150 million, about the size of the state of Texas.
Siddika Sultana Shika, executive director of ESDO, said most importantly the country does not have the expertise or the skills for e-waste management. The impromptu e-waste recyclers are the major sources of environmental hazards, he said.
The recycling trade has grown into one of the largest suppliers of metal scrap for the booming construction industry and other spent fuels, which have caused hazards for the environment, health and life in the region, said Hossain.
Despite repeated higher court directives, Bangladesh authorities have failed to curb the environmental menace created by the shipbreaking yards.
Weak legislation is to be blamed for the recycle industry’s notoriety. They enjoy wide political patronage of the government despite committing unabated environmental and social crimes, charged Shahriar.
Source: Grant Daily. By Saleem Samad. 19 March 2012