The sale of a Very large ore carrier (VLOC) during week 35 has belied the quiet recycling market.
Shipbrokers said that General Ore International’s 1990-built VLOC Rebekka N was sold for USD11,899,875 or USD325 per ldt for demolition in Pakistan.
However, Dubai-based cash buyer Global Marketing Systems (GMS) said that scrapyards are still apprehensive as the rupee was weakened after China devalued the yuan.
GMS said, “A stabilisation in currencies and further gains in steel prices will be needed for the market recovery process to truly kick in.”
It added that the influx of cheap steel imports from China must be restricted to stimulate demand for scrap steel.
Prices of bulkers hover at USD300 per ldt in India and USD270 per ldt in Bangladesh where demolition works have been affected by monsoon rains.
IHS Maritime analyst Paul Clemenson said that week 35 “was an extremely quiet time in the ship recycling market”.
Only two vessels, a bulker and a product tanker, were reported sold for breaking, both to undisclosed Indian interests.
Clemenson noted that the 1996-built Capesize bulker C Royal was sold for USD5,865,392 or USD326 per ldt, and there had been very little competition among buyers.