Local levels for another week were unable to match cash buyers expectations with several vessels sold for prompt beaching at prices one would assume are below breakeven.

In this regard, the market is open to beach ships - but at levels currently well below what India and Pakistan are presently paying.

The local steel price had actually fallen by BDT 2,000 for the week (to offset the rise of BDT 7,000 in preceding weeks). The currency also remains volatile and the issue of credit from Bangladeshi banks along with a shortage of dollars is proving quite the headache for both local recyclers and cash buyers in Chittagong.

Nevertheless, chances continued to be taken such was the case with the fleet of BM vessels sold from Italian owners 4 of which are prime Chittagong candidates. Delivery costs of course have to be considered for all vessels with the relevant cash buyer taking each vessel over with their own crew at an en bloc price of USD 20.48 million.

(Sourced from GMS Weekly)