GMS weekly report on shipbreaking industry for WEEK 13 of 2011:

Another week gone, another week wasted with the Bangladeshi High Court judge yet to sign the order permitting the import of vessels for scrap into Chittagong. The decision has already been made it has come right from the top with the PM of Bangladesh wading into the dispute - but whether tactical or not, this delaying has begun to frustrate all concerned with apparently vet another beaching tide to be missed.

Already a significant inventory has built up outside port limits and is waiting for the green light to clear inwards onto the beaches for respective end buyers to begin the cutting process. Moreover, it is being speculated that the Bangladesh Environmental Lawyers Association may be involved in trying to add measures to a bill that many end buyers already have a vague idea of what will be included.

However, until the executed order is studied in black and white in its entirety, very few end buyers remain unwilling to commit to new units without first understanding what might eventually be required of them in the recycling process ahead.

In the continued absence of Bangladesh, the markets in both India and Pakistan continued their recent resurgence with some high profile acquisitions at strong numbers. Both small and midsized tankers and bulkers found their way to end buyers in both countries at levels in excess of USD 500/LT LDT. China pressed on with the two marquee purchases of the week as a Chinese controlled Aframax tanker and Capsize bulker headed for local yards (albeit at slightly subdued levels at least some USD 50 off the Indian sub continent prices).

Cash buyers and owners started to reposition their tonnage because of Chittagong's mixed messages with patience swiftly running out for any imminent resolution in Bangladesh. Whether corruption, intrigue or sheer laziness is the reason behind the delay it is all very rapidly becoming immaterial as the validity and promises of official empty words begin to become meaningless.

For week 13 of 2011, GMS demo rankings for the week are as below:

Country          Market sentiment    GEN Cargo prices     TANKER price

Bangladesh    Bullish                    USD 4S5/lt ldt          USD 510/lt ldt

India             Steady                    USD 475/lt ldt          USD 500/lt ldt

Pakistan        Steady                    USD 475/lt ldt          USD 5001t ldt

China            Volatile                   USD 430/lt ldt          USD 450/lt ldt

Source: SteelGuru. (Sourced from GMS Weekly). Tuesday, 05 Apr 2011

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