Ship Scrap Prices to Dip Again as Monsoon Season Nears

Source:IHS Maritime 360
2015.04.16
1410

Although prices in South Asia's ship recycling markets maintained last week's levels, cash buyers forecast levels to regress again as the monsoon season nears.

Additionally, Bangladeshi buyers have committed themselves to a number of Capesize bulkers and are not inclined to buy more ships.

Prices in Bangladesh remained at US$385 per ldt for bulkers and US$410 per ldt for tankers, compared with US$380 per ldt and US$400 per ldt, respectively, three weeks ago.

Angelicoussis-controlled Anangel Shipping Enterprises, having recycled at least two Capesizes, sold another Capesize for scrap, offloading 1993-built Anangel Splendour for US$8.03m or US$413/ldt for recycling in Bangladesh.

Prices in India trailed levels in Bangladesh by US$5 per ldt, while bulkers and tankers are going for US$375 per ldt and US$400 per ldt respectively in Pakistan.

Cash buyer Global Marketing Systems said, "Monsoon season is also on the horizon in the sub-continent - those vessels set to deliver in May will be the last batch before continuous rains start from June (usually lasting until early September). Prices too, tend to be cooler over this period of time as the labour force returns to their hometowns as the seasonal rains hamper cutting activities."

With the Eastern Orthodox Christians celebrating Easter over April 12, Greek shipowners did not execute many transactions as well.

Dubai-based cash buyer Global Marketing Systems said, "It is very much expected that prices will soften further in the coming weeks, with the recent short spike just experienced based mostly on cash buyer speculation."

Indian buyers continue to pay good money for their preferred container ships.

Tsakos-controlled 1992-built container Hanjin Elizabeth was concluded for US$8.33m or a phenomenal US$441/ldt on an 'as is' basis in Fujairah with about 350 tonnes of bunkers, which is more than enough for the voyage to India.

GMS remarked, "It certainly seems that for favoured vessels, Indian buyers are prepared to offer over and above market just to secure the unit - such is demand and capacity at present."

The one sale into Pakistan last week was Odysea Carriers' 1987-built Panamax bulker Evrialos, which was sold for US$4.10m or a decent US$407/ldt. However, the shipowner has an option to sell into India should that market pay better.


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