The ship recycling market will not be spared from the uncertainties resulting from Greece’s financial crisis and the stock market plunge in China.
Dubai-based cash buyer Global Marketing Systems (GMS) said that 29 June-3 July was a nervy week in the Indian sub-continent markets with all eyes on Greece and the potential impact their exit from the Eurozone might bring.
“Local fundamentals too remained extremely volatile in all sub-continent location,” said GMS.
China’s cooling economy also suggests that cheap Chinese steel will continue to be exported to the Indian sub-continent and hurting demand for scrap steel, said GMS.
With more and more bulkers being sold for scrap amid a challenging freight market, prices have fallen to USD330-340/ldt, although higher prices could be negotiated for vessels with more metal content or leftover bunkers.
In Bangladesh, Bulk Partners’ 1989-built Panamax bulker, Bulk Discovery, was fixed for USD3.62 million or a decent USD363/ldt, on the basis of a prompt end-July delivery. Meanwhile, Ost-West-Handel und Schiffahrt’s 1980-built reefer, Baltic Stream, fetched USD2.85 million or an above market price of USD400/ldt, thanks to the 196 tonnes of aluminium on board.
Baltic Stream was initially offered into India, but yards there have not been as keen to acquire tonnage as their capacity is almost full.
However, Cafiero Mattioli Group’s small LPG carrier, 1992-built Syn Markab, fetched USD1.29 million or a firm USD485/ldt, with the 523 tonnes of nickel content contributing to the premium. The price is above the USD370/ldt that tankers are fetching in India.
In Pakistan, the possibility of new import taxes for ships to be broken up made ship recyclers refrain from buying tonnage.
However, Polsteam’s 1991-built Panamax bulker, Solidarnosc, managed to be sold for USD4.87 million or USD358/ldt.