Shipowners are refraining from selling older bulkers for demolition despite the depressed freight market as there is no sign of scrap prices improving in the near term.
As imports of cheap Chinese steel continue to flood South Asia, prices for bulkers continue to hover at $390/ldt.
As a result, only bulkers with leftover bunkers or a full set of spare parts can command higher rates.
Bulk Shipping Lines' 1988-built Handysize bulker Green Field 1 was sold for $4,031,104 or $409/ldt for demolition in Bangladesh as the vessel had a full set of spares.
Greek broker Golden Destiny also reported that Marmaras Navigation's 1995-built Capesize bulker Martzoukos A fetched $8,347,080 or $420/ldt as it had 300 tonnes of leftover bunkers.
Dubai-based cash buyer Global Market Systems commented, "It is still tough to pin down end buyers for any significant length of time (such is the volatility in the market and speed with which minds are changing locally).
"Despite another dire week on dry chartering rates, the number of candidates has slowed this week (particularly on Capesize bulkers) as several owners seemed unwilling to cash in at the lower realities of today.
"With few signs of light to lift the recycling sector from its current predicament, the immediate market prospects therefore remain gloomy. Local governments will have to be more decisive in minimizing the effect the import of Chinese billets is having and need to promptly enforce the promised duties to bring about some greater stability."
Source: his maritime 360. 03 February 2015