Prices of recycled tonnage continue to face downward pressures in India as the Indian currency and steel prices weakened again last week.

Prices of bulkers are hovering at US$350/ldt in India and US$365/ldt in Pakistan, largely unchanged from the previous week.

Dubai-based cash buyer Global Marketing Systems noted, "It has been an entirely underwhelming post-budget period in an Indian market that has witnessed constant falls over the past six months or so, with almost 30 percent being wiped off market prices there.

"Much will rest on the direction of the Chinese exports and whether steel billets will continue to invade subcontinent markets, significantly undercutting inventories already on end-user plots."

The influx of cheap Chinese steel is competing with demand for scrap steel and ship breakers have been lobbying the Indian government to impose import taxes on Chinese steel.

The bleak outlook on the Indian market following a lacklustre budget worsened this week with local steel prices losing almost US$20/ldt value and the currency depreciating to just over INR63 against the US dollar.

This has deterred ship recyclers from buying ships that are not short in supply.

Container ships, however, continue to be in demand due to the suitable draughts in India. Supply of box ships has also been drying up in Indian yards and the latter is looking to restock on this vessel type.

Reederei Hermann Wulff's 1993-built 1,661teu Manuela was sold for US$3.05m or US$380/ldt with 150 tonnes of leftover bunkers.

Pakistani buyers also bought two bulk carriers that had significant amount of leftover bunkers.

SNP Shipping Services' 1992-built Panamax bulker The Watchful, fetched US$3.86m or US$400/ldt as it had 750 tonnes of leftover bunkers, while 1985-built Handysize bulker Shehab Almuhiedine, controlled by Eastern Star Shipping, fetched US$2.16m or a decent US$380/ldt.