18 May 2015

Shipbreaking market slow with falling prices:


The sale of ships for recycling slowed last week as more shipowners refused to accept anything less than USD400 per ldt for their vessels.

The deluge of Capesizes and other dry bulk carriers being offered for scrap has forced prices down as scrap yards began exploiting the situation.

Prices are hovering at USD365-370 per ldt for bulkers in South Asia, as the depressed freight market compels owners to offload older ships.

The only reported sale last week was that of Enterprises Shipping & Trading's 1994-built Panamax bulker Bergen Max, which fetched USD3.99 million or USD380 per ldt for recycling in Pakistan.

Dubai-based Global Marketing Systems (GMS), the world's biggest cash buyer, said demand from scrap yards remains almost non-existent, while Indian steel plate prices have suffered yet another week of depreciation in all Indian sub-continent markets.

The national budgets in both Pakistan and Bangladesh at the start of June have been two eagerly anticipated events, but nothing much has (historically) materialised to adversely affect the respective ship recycling industry.

GMS said, "However, time and again, scrap yards have preferred to negotiate on vessels arriving before national budgets are set, in the unlikely event that new taxes or duties are imposed upon the ship recycling sector, which would affect the profitability of their deals."

The impending South Asian monsoon season is also expected to make the period between June and August quiet, especially if prices remain below the USD400 per ldt mark.

GMS said, "Indeed many owners are simply choosing to lay up their vessels, as evidenced by the number of candidates idling just off Singapore at the moment."

Source: ihs maritime  360. 18 May 2015

1 comment:

Unknown said...

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