As vessels continue to arrive into
Chittagong at a furious rate (a result of the buying frenzy of several weeks
ago), any confidence that cash buyers had that Bangladesh could prop up a
creaking market, were left shattered by a complete slump in prices and local
buying interest.
As many had predicted, once the
majority of the hot / able buyers had booked their units, a relative gloom
descended over the industry this week, with only the less capable / financially
solvent buyers open to buy and that too at far reduced levels.
Furthermore, steel prices came under
pressure after several days of consecutive falls leaving an overall dramatic
shortage of buyers on the market for those vessels that continue to be
proposed.
Several interesting deals were
reported for the week at levels that would, now, not be considered viable
(perhaps the relevant cash buyers have speculated on their high priced
purchases). The VLCC APOLLO 16 (34,673 LDT) was reportedly sold 'as is' Labuan
for USD 461/LT LDT and the Frontline controlled ex OBO FRONT RIDFR (23,473 LDT)
was sold 'as is' Singapore for region USD 440/LT LDT.
Source:
Steel Guru. 29 May 2012
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_21/265919.html
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