Ship recycling prices fell again from June 22 to 26 June as the South Asian monsoon took its toll on ship demolition activities.

As a result, no sales were reported except for that of a tanker that was sold for scrapping in Bangladesh.

Bulker scrap prices have slipped to US$345-US$350/ldt, compared with US$350-US$370/ldt in the last two months. For tankers, they are going for US$375-US$380/ldt.

The deluge of bulkers being offered for recycling comes after the Baltic Dry Index (BDI) fell to a historic low this February.

The sole sale last week was that of Estoril Navigation's 1992-built LR1 product tanker Varg Star, which was sold for US$6,413,200 or US$400/ldt.

Dubai-based cash buyer Global Marketing Systems (GMS) said that renegotiations have been common as steel prices see-saw during this period, resulting in scrap yards being in no hurry to commit to tonnage.

GMS said, "The monsoon phenomenon will be an ongoing theme over the summer months, and activity, demand, and pricing should be expectedly slow as a result. As such, owners with vessels to sell should not over-estimate the market and must not rest on their laurels until vessels due to be delivered are done so - especially until the money is in the bank and the ship is safely on the beach."