The traditional peak season of secondhand S&P market has come with the year end drawing in. Besides, stabilization and recovery signals of domestic economy are gradually emerging. As a result, demand and enquiries for secondhand bulkers increase greatly in the period with many cash-rich buyers express strong willingness of bottom-fishing.
Enquiries for 5,000dwt bulkers continue to increase. More and more buyers are turning to bulkers built after 2008 or 2009 for further lower prices affected by the recent cheap ships sold at auction. Freight increase for 10,000dwt to 20,000dwt bulkers has driven the assessment and enquiries for the ship type, which has always been the market hot since the beginning of the year. The demand for 20,000dwt and bigger bulkers has also warmed up. Some buyers even plan to cash purchase a 25,000dwt to 30,000dwt bulker to haul coil at a price of CNY50.0m.
In the period, a three-year 15,500dwt bulker and a two-year 13,500dwt one were reported to be changed hand at a rumored price of CNY25.0m and CNY20.0 separately.
However, the increase of enquiries fails to stop the declines of ship prices. The China Secondhand Ship Price Index for different bulker types continued the downturn in the last two weeks.
Despite the weakness of product oil consumption, secondhand tanker enquiries witness mild increase, especially small Grade I tankers. There are domestic owner looking for spot ship of 1,000dwt Grade 3 tankers built after 2010. However, available ships are not so much, especially double-hull ones. Buyers from South East Asia are looking for elder 1,000dwt to 2,000dwt Japan-blt tankers to transport light oil. However, most of these ships have been converted and available resources are limited due to its good quality and excellent economic performance. Enquiries for 2,000dwt to 3,000dwt Grade I tankers are still hot and are mostly from China, South East Asia and Middle East areas. Demand for 3,000dwt to 5,000dwt tanker keeps stable in the period.
It is reported a newbuilt 4,500dwt product oil tanker were traded at a price of CNY28.0m.
Some overseas buyers are looking for 3,000dwt containership for international routes services. Besides, enquiries for small MPPs are still relatively active.
For engineering ships, there are overseas buyers enquiring about split hopper barges of 1,500dwt to 2,000dwt.