Markets - Recycling - Bangladesh leads the way

Apr 26 2019

As we near the cut off date of the Bangladeshi budget on 5th June and the upcoming monsoon season across the subcontinent markets, deals kept being concluded.

A red hot Chattogram market has been and continues to secure a majority of the tonnage, at levels in the mid-to-high $400s per ltd, whilst the competing Indian and Pakistani markets struggle some $20 – $30 per ldt behind, GMS said in its weekly report.

There are growing expectations that new taxes/duties might be introduced in the Bangladesh budget, which is why end buyers are nervous about acquiring vessels post-5th June and are primarily looking for prompt deliveries.

India has also taken in a steady flow of HKC SoC green units along with offshore vessels this year and this trend is set to continue, going into the second-half of 2019.

Pakistan remained stranded some way behind both Bangladesh and India and has only been taking small LDT vessels this year, being fearful of an exposure on some of the larger units on offer.

However, Pakastani prices have been inching up of late, but this is still not enough for the country to be competitive, even with India, at present.

As such, given the rate at which things are progressing at Gadani, it will take some more time for local buyers to restart acquiring their share of market tonnage, GMS concluded.


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