GMS weekly report on Bangladesh shipbreaking industry for WEEK 21 of 2011:

Finding an open buyer in Bangladesh this week was like searching for the proverbial needle in the haystack. With the majority of local recyclers apparently satisfied with recent purchases and local yards nearing capacity, the deluge of potential vessels that continue to be proposed are not finding willing and keen local buyers.

Supply has been clearly outstripping Bangladeshi demand, and whilst steel prices continue to impress, the price, increasingly, does not. Majority of the units being proposed locally were simply failing to secure any sort of interest or meaningful offers and certainly not at the levels that respective owners had in mind.

As a result, the ensuing panic has left many cash buyers with recently acquired tonnage looking to offload their inventory in order not to potentially lose their values by the passing days. The onset of the Bangladeshi budget (on June 9th 2011), only furthered the sense of urgency in committing recent purchases.

Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 31 May 2011

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