The coastal dry bulk shipping market has seen mild recovery with the coal shipping picking up recently. However, secondhand bulker transactions remain the weak tone in the period.
In the last two weeks, buyers’ focus has turned to 15,000dwt to 20,000dwt bulkers. Enquiries for 5,000dwt bulkers have obviously declined, demonstrating the elimination of small bulkers has sped up.
A three-year ZC-classed 4,900dwt bulker was changed hand at a price of CNY7.0m. Besides, a four-year 23,000dwt ZC-classed bulker is put for sale at CNY45.0m and the seller says further counteroffer would be acceptable. At the same time, a buyer is looking for five-year 8,000dwt bulk carrier whose supply information is rare currently.
The indices for different bulkers keep declining in the period. Buyers are trying to lower current quotations, which will further drive current bulker values down.
Oil shipping market stays stale in the period. However the number of idle tankers in ports is on the rise affected by the weather, decreasing oil sales and capacity growth.
Secondhand S&P activities remain sluggish in tanker sector, demand and supply for small bunker tankers are on the downside. The demand for Grade I tanker is still strong, on the contrary, enquiries for Grade III tankers with heating equipment are declining with dirty oil shipping market weakening.
It is reported that a six-year 3,200dwt Grade I tanker were traded at about CNY11.0m. Besides, a shipowenr is trying to dispose a 2006-blt 3,500dwt Grade I tanker at an offer of CNY13.5m to CNY 14.0m.
Market demand for 3,000dwt tankers has been further weakened, which accelerates the elimination of the type and drives the price index down. The value of 5,000dwt bulker is relatively stable due to abundant capital of the owner.
The period witnesses the transaction of a two-year 1,700dwt AHTS at about CNY2.0m. Another five-year 1,000dwt containership is reported changing hand at about CNY1.0m.
In offshore sector, deck barge is still the market hot with project demand from China and South East Asia growing. A buyer is looking for 2,000HP tugboat for inner port working.
At the same time, scrapping yards are facing more pressures with domestic steel demand and steel plate price seeing further declines.