30 November 2010

GMS update on Bangladesh, India and Pakistanship breaking industry for WEEK 46 of 2010

Bangladesh ship breaking industry - WEEK 46:
Another quiet week in Bangladesh, in terms of NOCs granted and beachings taking place, left many questioning once again, the industry and the optimism surrounding the most recent set of beachings.

Whilst a selection of cash buyers has managed to offload some of their 'as is' tonnage, there is still a significant amount remaining. Additionally, no owners have vet managed to bring vessels in themselves, in the usual delivered manner for beaching.

It remains a delicate situation locally with nobody entirely sure whether fresh permissions will be granted to authorize new clearances or whether those who have already beached must prove themselves capable of fulfilling the 62 conditions before others can attempt to do likewise.

Pakistan ship breaking industry - WEEK 46:
The buying activity continued for the week in Pakistan as 3 more market units found their way to local buyers. Demand post Eid has really seen Pakistani buyers competing far more aggressively with their Indian counterparts and for the first time in some months, the sales board managed to register more than that of their neighbors.

Two PKSC ships have been sold recently, the BOLAN achieved a firm USD 44S/LT LDT and the aframax tanker SWAT received USD 467/LT LDT. The sister ship JOHAR is due to be sold next week with Pakistan now perhaps the most obvious and likely destination.

With levels improving along with steel prices, it should be a busy finish to the year as the aggression to stockyards shows no sign of letting up.

Indian ship breaking industry - WEEK 46:
As Diwali and Eid holidays reached their conclusion, it was back to business as usual for the Indian market, with sentiment remaining healthv in what has been a bullish end to the year so far.

As Pakistan have come back into the picture and Bangladesh have begun to beach a few units (although a full market reopening it most certainly is not), India may not have had it all their own wav of late. However, they still managed to pick up their share of the market tonnage, with two more units scheduled to head their wav from this week.

ODFJELL continued their clear-out of older tonnage as the BOW PANTHER (9,563 LDT) found a buyer for a two month forward delivery at basis January 2011 cancelling. Its destination will be a fully approved green recycling facility in Alang and the vessel fetched a very firm price region USD 4S0/LT LDT, thanks to 70 tonnes of stainless steel in deck and cargo lines, along with the generally excellent condition of their vessels, which ensured the premium price.

Unless some unmediate and positive solution can be found with regards to Bangladesh, it is sure to be a busy end to the year for all concerned with Indian buyers as usual, welcoming all types of vessels and for the time being at least, at strong levels.
Source: Steel Guru; Tuesday, 23 Nov 2010

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