Ship scrap prices decreased again from 22 to 26 June as the South Asian monsoon took its toll on ship demolition activities.
As a result, no sales were reported except for that of a tanker that was sold for demolition in Bangladesh.
Bulker scrap prices have slipped to USD345-USD350/ldt, compared with USD350-USD370/ldt in the last two months. For tankers, they are going for USD375-USD380/ldt.
The deluge of bulkers being offered for recycling comes after the Baltic Dry Index fell to a historic low in February 2015.
The sole sale last week was that of Estoril Navigation's 1992-built LR1 product tanker Varg Star, which was sold for USD6,413,200 or USD400/ldt.
Dubai-based cash buyer Global Marketing Systems (GMS) said that renegotiations have been common as steel prices see-saw during this period, resulting in scrap yards being in no hurry to commit to tonnage.
GMS said, "The monsoon phenomenon will be an ongoing theme over the summer months, and activity, demand, and pricing should be expectedly slow as a result. As such, owners with vessels to sell should not over-estimate the market and must not rest on their laurels until vessels due to be delivered are done so - especially until the money is in the bank and the ship is safely on the beach."
Source: ihs maritime 360. 29 June 2015