The ship demolition rate differential between the Indian subcontinent and China continued to narrow last week, against the background of yet another round of bulk carriers and reefers sold for scrap.
Dry vessels are now fetching well below $500 per ldt from buyers in India, Bangladesh and Pakistan, while rates for tankers are hovering at that benchmark.
The wide expectation is that rates will fall further in the short term, perhaps as low as $450 per ldt.
In China, meanwhile, prices have remained steady in the mid-$400s per ldt, sometimes higher depending on the ship.
“Whilst prices were never expected to dip below the $450 per ldt mark, they have still come off some $25 to $30 per tonne over the last couple of weeks and hits across the board have been felt for vessels being delivered post decline,” said US-based cash buyer GMS.