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 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_21/265919.html