16 April 2015

Ship scrap prices to drop again as monsoon season nears:

Although prices in South Asia's ship recycling markets maintained last week's levels, cash buyers predict levels to regress again as the monsoon season nears.

In addition, Bangladeshi buyers have committed themselves to a number of Capesize bulkers and are not inclined to buy more ships.

Prices in Bangladesh remained at USD385 per ldt for bulkers and USD410 per ldt for tankers, compared with USD380 per ldt and USD400 per ldt, respectively, three weeks ago.

Angelicoussis-controlled Anangel Shipping Enterprises, having recycled at least two Capesizes, sold another Capesize for scrap, offloading 1993-built Anangel Splendour for USD8.03 million or USD413/ldt for recycling in Bangladesh.

Prices in India trailed levels in Bangladesh by USD5 per ldt, while bulkers and tankers are going for USD375 per ldt and USD400 per ldt respectively in Pakistan.

Cash buyer Global Marketing Systems said, "Monsoon season is also on the horizon in the sub-continent - those vessels set to deliver in May will be the last batch before continuous rains start from June (usually lasting until early September). Prices too, tend to be cooler over this period of time as the labour force returns to their hometowns as the seasonal rains hamper cutting activities."

With the Eastern Orthodox Christians celebrating Easter over 12 April, Greek shipowners did not execute many transactions as well.

Dubai-based cash buyer Global Marketing Systems said, "It is very much expected that prices will soften further in the coming weeks, with the recent short spike just experienced based mostly on cash buyer speculation."

Indian buyers continue to pay good money for their preferred container ships.

Tsakos-controlled 1992-built container Hanjin Elizabeth was concluded for USD8.33 million or a phenomenal USD441/ldt on an 'as is' basis in Fujairah with about 350 tonnes of bunkers, which is more than enough for the voyage to India.

GMS remarked, "It certainly seems that for favoured vessels, Indian buyers are prepared to offer over and above market just to secure the unit - such is demand and capacity at present."

The one sale into Pakistan last week was Odysea Carriers' 1987-built Panamax bulker Evrialos, which was sold for USD4.10 million or a decent USD407/ldt. However, the shipowner has an option to sell into India should that market pay better.

Source: ihs maritime360.14 April 2015

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