Bangladeshi recyclers were once again left
witnessing Aframax tankers that were favorably positioned in the Far East being
diverted towards India, as its competing neighbor continues to outbid them, in
what has become an increasingly concerning trend over recent weeks.
What remains the only silver lining to the
current situation has been the amount of tonnage that has been delivered to
domestic yards over recent weeks, including a number of VLCCs - one of which
was beached after several tides of delay, primarily due the lack of being
appropriately cleaned to local “gas free for hot works” standards.
On the one hand, several Cash Buyers are
holding back from committing their Bangladesh intended units to local
Recyclers, as they attempt to inflate local demand and subsequently prices. On
the other, local Recyclers are getting desperate to acquire units as they look
to satisfy their banking limits before the year-end and are increasingly
frustrated at losing a healthy majority of the recently concluded dry vessels
to Pakistani Buyers and most tankers & even locally favored PCCs to Indian
Recyclers.
While the current conditions seem to incubate
the ideal scenario for a robust firming of prices from the Bangladeshi market,
local steel plate prices have not enjoyed the upward trajectory witnessed from
the Indian market over this past month that would embolden such a firming.
As such, there are limitations to which even
tonnage-hungry Bangladeshi recyclers are able to effectively compete.
Source:
steel
guru. 20 December 2017
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