A note of caution crept into the market this week with many buyers expressing alarm at the fact that the judge has yet to sign the court order to give the all clear for local yards to commence the import of ships once again for recycling.
The PM has already given her vote of confidence to the industry so it can only be a matter of time before the order actually is signed with many expecting it to be at some point over the coming week. However, it could be that the Bangladesh Environmental Lawyers Association are having their say in what conditions are being put into the order before it is released to the unsuspecting ship recyclers who claim to already have a good idea of what changes to expect.
With local steel prices dropping almost USD 20 upon the reopening of the market prices have been some way from what most cash buyers have been expecting. Decent bulkers have been seeing USD 500 and below (with many recently considering USD 490 to be a more realistic figure) and tankers some USD 25 ahead even though many end buyers are reluctant to commit to tankers in particular due to the imposing new rules concerning gas freeing of all tanks.
In amongst news of pricing and uncertainty of the status of the market, certain cash buyers were busy overpaying on units and having no other option but to cancel deals.
Oil the sales front this week, Korean owners STX brought several vessels onto the market for demolition or further trading. With both being worked with the Bangladeshi option in mind, the PAN VOYAGER (6,863 LDT) and OCEAN ISLAND (11,688 LDT) went to further trading buyers at levels just excess scrap and the Capesize bulker OCEAN PARK (25,402 LDT) found one speculative demolition buyer for late May delivery 'as is' South Korea for a firm USD 450/LT LDT.
Source: SteelGuru. (Sourced from GMS Weekly). 22 March 2011
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_11/196703.html
The PM has already given her vote of confidence to the industry so it can only be a matter of time before the order actually is signed with many expecting it to be at some point over the coming week. However, it could be that the Bangladesh Environmental Lawyers Association are having their say in what conditions are being put into the order before it is released to the unsuspecting ship recyclers who claim to already have a good idea of what changes to expect.
With local steel prices dropping almost USD 20 upon the reopening of the market prices have been some way from what most cash buyers have been expecting. Decent bulkers have been seeing USD 500 and below (with many recently considering USD 490 to be a more realistic figure) and tankers some USD 25 ahead even though many end buyers are reluctant to commit to tankers in particular due to the imposing new rules concerning gas freeing of all tanks.
In amongst news of pricing and uncertainty of the status of the market, certain cash buyers were busy overpaying on units and having no other option but to cancel deals.
Oil the sales front this week, Korean owners STX brought several vessels onto the market for demolition or further trading. With both being worked with the Bangladeshi option in mind, the PAN VOYAGER (6,863 LDT) and OCEAN ISLAND (11,688 LDT) went to further trading buyers at levels just excess scrap and the Capesize bulker OCEAN PARK (25,402 LDT) found one speculative demolition buyer for late May delivery 'as is' South Korea for a firm USD 450/LT LDT.
Source: SteelGuru. (Sourced from GMS Weekly). 22 March 2011
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_11/196703.html
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