- Distinct disinterest
- No worth speculation
Bite the Bullet!!
A distinct disinterest on incoming
units has typified the Bangladeshi market for a few weeks now despite the
assertions failing presumptions of many cash buyers that the market would pick
up pre deadline of October 12th 2011.
The truth is that many yards remain
stuffed with previously delivered tonnage and the local steel prices are not
reflecting the purchase levels of vessels being presently negotiated. Moreover,
as cherry picking for units continues locally, the prices on offer appear to
wildly fluctuate from levels ranging from region USD 490 to slightly above USD 500
per tonne on the dry side.
On the other hand, recently
surfaced rumblings indicate that the market extension many are seeking could be
in place within this week, once the judge sits down to view the appeal that has
already been put forward. Until that time, it does not appear to be worth
speculating or even expecting the market to stay open, as historically has the
case, it was a full two months before the order was signed and business could
resume as normal for the local market.
For the time being, a number of
vessels remain outside port limits due to the disappointing prices on show, with
some tough decisions needed on whether to hold of bite the bullet for some
considerable losses.
Source: Steel Guru (Sourced from GMS Weekly). 04
October 2011
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