The few buyers that have actually been able to finance fresh purchases and commit to incoming vessels had begun to feel the pinch by the end of the week. Accordingly, they were unwilling to commit to anything new, until the current crisis showed signs of abating.
Needless to say that the market has opened up at nothing like the levels forecast by many cash buyers. Consequently, there remain a large number of deals that are struggling to breakeven, let alone finish in the black.
Of course the looming tax issue remains unresolved (and may not be until June to July judging from the latest local reports), and most end buyers are struggling to raise any sort of finance from banks unwilling to loan.
As a result Bangladesh, has become a very specialized market - with deliveries there becoming far more cumbersome and delays (in customs clearance and to open LCS) now very much customary.
Source: Steel Guru (Sourced from GMS Weekly). 16 February 2012
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_06_2012/250441.html
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