King Edward was sold for USD5,047,645 or USD415/ldt in the only sale to India last week. Photo: Dietmar Hasenpusch/IHS
Cash buyers became more bullish last week as sentiment picked up in South Asia's ship recycling market.
Prices in Bangladesh improved to USD385/ldt for bulkers and USD410/ ldt for tankers, compared with USD380/ldt and USD400/ldt two weeks ago.
Prices in India trailed levels in Bangladesh by USD5/ldt while bulkers and tankers are going for USD375/ldt and USD400/ldt in Pakistan.
Cash buyer Global Marketing Systems (GMS) said, "Steel prices and currencies in the subcontinent have finally begun to display a modicum of positivity and this has led to a raft of new vessels being concluded to eager end buyers. It seems that present rates are proving tempting enough for owners [particularly in the dry bulk sector] as charter rates continue to flounder."
Dalian Haida Shipping's 1985-built Handymax bulker Merry Trans was committed for a very firm USD4,177,080 or USD410/ldt, as owners started to see levels once again that made it worth to scrap their overaged tonnage.
GMS, however, cautioned that the oversupplied dry bulk carrier market and the poor freight market for this sector would ensure there would be no shortage of older ships up for scrap and this would prevent a surge in scrap prices.
The company said, "Scrapping in the Panamax bulker sector is likewise expected to pick up again as prices improve. It is perhaps this oversupply of tonnage that may just keep prices in check rather than seeing constant heady improvements as we had seen during the first half of last year when levels pushed over and above USD500/ldt."
The market in India is picking up as the rupee has been trading comfortably at INR62 to the US dollar and as local steel plate prices have gained over USD20/ldt over the past few weeks.
The 1985-built general cargo ship King Edward was sold for USD5,047,645 or USD415/ldt in the only sale to India last week.
Source: ihs maritime360. 7 April 2015