07 February 2013

GMS weekly report on Bangladesh shipreaking industry for WEEK 5 of 2013

The Bangladeshi market took their share of vessels this week to keep pace with competing markets. Vessels discharging clinker in the area such as the Chinese owned FU XIANG (7,609 LDT) were the most logical candidates for the Chittagong market bearing in mind the strength of China and their Indian sub-continent competitors in Pakistan and India.

The USA controlled aframax tanker ORKNEY SPIRIT (16,476 LDT) obtained a special price of USD 440/LT LDT 'as is' either in Kaohsiung or Hong Kong, with about 800 T bunkers expected to be on board upon delivery. The concerned cash buyers will have to clean the vessel themselves to hot works standards in order to obtain entrv into Bangladesh. However, the decent size and USA ownership should see the vessel fetch a decent price into Chittagong.

A rarity of favored units in Bangladesh currentlv (owing to the performance of competing markets / overall lack of preferred units such as capesize bulkers in the market) should see the price pushed up accordingly.

Turkish owners sold the bulker ALBUS (6,829 LDT) for a firm USD 425/LT LDT in the other market move for the week. It will be interesting to see if the number of candidates increases with the expected absence of the China market owing to the impending Chinese New Year holidays for the next few weeks.

Source: GMS Weekly. 5 February 2013
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_5/300525.html

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