GMS weekly report on BANGLADESH shipbreaking industry for WEEK 23 0f 2011:

The eagerly anticipated news of the annual Bangladesh budget was announced this week with one major overhaul being that of the import tax being upped by some 3%. Local buyers had initially placed its effect on the prices at about USD 10/LT LDT, however the drop could have a lower effect on the market (the suspicion being that local buyers are trying to keep their prices in check).

The fact remains though that the market is still due to (or expectedly due to) close on July' 7th and demand in the previous two tides before the scheduled closure should mean some form of bullishness in price (even though many yards are currently struggling with capacity and many local buyers are under pressure to sort out their financing and LCs).

On the SNP front, HOSCO continued their clearout of older tonnage this week as the HEBEI LION (13,297 LDT) followed the VLOC HEBEI INNOVATOR to local buyers at reportedly strong levels.

Noteworthy of the week's activities in Bangladesh have been the number of "beachings" this week at Bangladesh. Nearly 300,000 tons LDT (most of it beached) has been the focus of attention of Cash Buyers and ship recyclers alike.

Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 14 June 2011

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