Ahead of national budgets being announced on the Indian sub-continent, cash buyers dangled higher offers to secure tonnage for pre-budget deliveries.
There is a chance that the budgets could raise import taxes on tonnage. Prices were upped by more than $10/lt ldt in India, Bangladesh and Pakistan.
The three countries are offering $450-$460/lt ldt for bulkers and $480-$490/lt ldt for tankers.
Dubai-based cash buyer Global Marketing Systems noted: "Additionally, after a positive start to the election process in various states, Indian buyers began to speculate on a landslide election win for their favoured candidate, Mr. Modi."
Singapore-based Chinese ship owner Ocean Sentinels Shipmanagement sold 1987-built Yu Jie for an unbelievable $5,459,752 or $502/lt ldt, for demolition in India.
The vessel had 350-450 tonnes of leftover bunkers. GMS remarked: "With the bunker value almost $15/lt ldt and the 10,000ldt size likely to attract many buyers, the speculative cash buyer has clearly taken a chance that Indian market will be able to justify the price on show, particularly with a May delivery likely (pre-budgets in both Pakistan and Bangladesh)."
In Bangladesh, Tuofu Shipping Management's 1993-built Panamax bulker Tuo Fu 3 was sold for demolition for $7,800,517 or $491/lt ldt as it had 750 tonnes of leftover bunkers. GMS said: "The vessel being converted from a tanker to bulker (therefore having about 4,000 tonnes of renewed steel) saw the vessel achieve a significant premium over straight bulkers."
The news marks a contrast with the caution expressed by the sector last month as steel prices fell.
Source: ihs maritime 360. 5 May 2014http://www.ihsmaritime360.com/article/12570/ship-recycling-prices-push-up-ahead-of-national-budgets