Signs of life from the Bangladeshi market were on display this week as end buyers returned to the bidding tables and existing cash buyer tonnage arrived local anchorage awaiting beaching.

Whilst still a fraction behind what India and Pakistan are there to pay, the gap in prices had started to narrow as the week ended. Accelerating the narrowing gap was the fact that Indian buyers themselves had started to reverse their prices (albeit it gradually), owing to the number of vessels that had started flooding into the market.

Several handles, the CEBU STAR (9,759 LDT) and KS TRADER (8,109 LDT), were concluded to Chittagong buyers - where both vessels were conveniently completing discharge therefore making both prompt candidates for beaching early tide of February.

Yet to be resolved is the 5% import tax issue and local finance, both of which remain a problem for a Bangladeshi recycling market that remains desperately short of US Dollars. Incoming owners will have to realize that it will take some time for import formalities to be completed and funds to be released, in a market that is still finding its feet after the recent opening.

(Sourced from GMS Weekly)