14 April 2015

Buying trend returns to ship recycling markets:


Cash buyers showed a willingness to acquire ships for demolition last week, amid talks that the Indian government would impose import taxes on Chinese steel.

Improving local steel prices and a stabilising Indian rupee also saw scrap prices rising by at least USD20/ldt.

Dubai-based cash buyer Global Marketing Systems (GMS) commented, "Capacity remains very good locally and it is encouraging to finally see end buyer enquiries emerge for all types of vessels in the subcontinent again. Consequently, several market sales took place this week at improving rates and a number of other units were under negotiation at speculative levels as cash buyer competition ramped into overdrive once again."

Prices in Bangladesh improved to USD380/ldt for bulkers and USD400/ldt for tankers, compared with USD365/ldt and USD385/ldt two weeks ago.

Arpeni Pratama Ocean Line's 1990-built Panamax bulker Citrawati fetched USD3,711,630 or USD390/ldt, while Pacific International Lines' (PIL's) 1992-built multipurpose carrier Kota Berlian was committed at USD2,975,600 or USD400/ldt.

Brokers told IHS Maritime that having acquired quite a number of Capesize bulkers since the start of the year, cash buyers and scrapyards have been slowing down their purchases of such ships. However, this should change if scrap prices hold up.

Meanwhile, prices in India improved to USD370/ldt for bulkers and USD390/ldt for tankers, compared with USD350/ldt and USD370/ldt two weeks ago.

GMS said, "Moreover, with yard capacity standing at almost 60% following a period of market decline and inactivity, now seems like the ideal time for many local recyclers to jump back into the buying."

PIL also offloaded another multipurpose carrier, its 1993-built Kota Berjaya, for a decent USD2,905,875 or USD405/ldt.

Furthermore, Goldenport sold its 1992-built Handymax bulker Golden Trader, fetching USD4,092,634 or an excellent USD398/ldt, due to the country of build and condition. IHS Maritime's Sea-web.com shows the ship was built by Split Shipyard.

Source: ihs maritime. 36030 March 2015

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