A dozen vessels have been sold for scrap in the past week and market experts warned of a probable downward price correction.
“The sheer volume of tonnage being circulated in the market is beginning to take its toll and is now placing extreme pressure on price levels and sentiment,” said London-based Clarkson Research Services. 
“Considering these conditions, a negative correction in pricing certainly seems likely.”
Clarkson pointed to volatility and uncertainty in the sector, with evidence that some breakers were trying to renegotiate previously-agreed sales or even withdrawing altogether.
US-based cash buyer GMS expressed a similar view and said it was now a buyer’s market.
“There continues lingering doubt as to whether the current rates can persist amid the constant supply of tonnage and the gradual yard stocking of the keenest and most financially sound buyers,” GMS said.