20 February 2013

GMS weekly report on Bangladesh shipbreaking industry for WEEK 7 of 2013:

A drastic few weeks of decline and fall has finally seen prices settle, some way below USD 400/LT LDT on dry units (with up to 400-405/LT LDT there on decent, favored bulkers), and about USD 25/LT LDT ahead for tankers (gas free for hot works) and containers.

All types of vessels continued to arrive from cash buyers, and those that had not been diverted elsewhere, invariably faced trouble with end buyers trying to wriggle and justify the market price of the dav. Those units concluded at some of the extraordinary and speculative highs of last month faced particular pressure with certain cash buyers becoming increasingly desperate to sell at numbers that no longer exist.

It is never a good time to sell when the market is falling - no cash buyer or owner wants to be chasing down the market and certainly, end buyers have begun to scent blood and are looking to take advantage of some increasingly desperate Sellers.

Of those deals that were concluded, the Polish built bulker YELLOWSTONE (9,765) achieved a firm USD 415/LT LDT as did the ABS classed handysize bulker BARBRO (6,575 LDT) at USD 410/LT LDT. Meanwhile the STAR ISLAND H (5,409 LDT) faced a renegotiation by a reported USD 12/LT LDT upon arrival by the concerned cash buyer.

Source: Steelguru. 19 February 2013

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