The sale of ships for recycling slowed last week as
more shipowners refused to accept anything less than USD400 per ldt for their
vessels.
The deluge of Capesizes and other dry bulk carriers
being offered for scrap has forced prices down as scrap yards began exploiting
the situation.
Prices are hovering at USD365-370 per ldt for bulkers
in South Asia, as the depressed freight market compels owners to offload older
ships.
The only reported sale last week was that of
Enterprises Shipping & Trading's 1994-built Panamax bulker Bergen Max,
which fetched USD3.99 million or USD380 per ldt for recycling in Pakistan.
Dubai-based Global Marketing Systems (GMS), the
world's biggest cash buyer, said demand from scrap yards remains almost
non-existent, while Indian steel plate prices have suffered yet another week of
depreciation in all Indian sub-continent markets.
The national budgets in both Pakistan and Bangladesh
at the start of June have been two eagerly anticipated events, but nothing much
has (historically) materialised to adversely affect the respective ship
recycling industry.
GMS said, "However, time and again, scrap yards
have preferred to negotiate on vessels arriving before national budgets are
set, in the unlikely event that new taxes or duties are imposed upon the ship
recycling sector, which would affect the profitability of their deals."
The impending South Asian monsoon season is also
expected to make the period between June and August quiet, especially if prices
remain below the USD400 per ldt mark.
GMS said, "Indeed many owners are simply
choosing to lay up their vessels, as evidenced by the number of candidates
idling just off Singapore at the moment."
Source: ihs maritime 360. 18 May 2015
1 comment:
Nice Blog. The scrap metal business is a spread to the international level because it contributes in the economy in a very high percentile as its scrap metal rates increases drastically.
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