Ship recycling sales slowed from 10-14 August as China’s devaluation of the yuan affected the Indian rupee’s stability.
On 11 August the yuan was devalued by nearly 2%, shocking global financial markets.
The Indian rupee then fell to a two-year low, hitting INR65 to the US dollar.
Related news: Shipbreaking at virtual stand-still
In India, bulkers are being sold for USD280/ldt. Prices have barely moved since falling to below USD300/ldt in July. Cash buyers told IHS Maritime they believed the market might have bottomed out.
However, Dignity Shipping’s 1982-built Handysize bulker Lina-Y was sold for USD2,031,120 or USD315/ldt, reportedly because the grain-carrier was found to be in good condition on inspection.
Bryan Denizcilik’s 1986-built Handysize bulker Umay fetched USD1,687,894.50 or USD316.50/ldt.
Both ships were sold to Indian interests.
It remains to be seen if these levels can be maintained in light of world economic developments.
Meanwhile, five members of the Bangladesh Ship Breakers Association have formed a cartel in the hope of restoring earnings.
Dubai-based cash buyer Global Marketing Systems however, thinks this will be tough unless prices become competitive enough to attract tonnage.
It was also quiet in Pakistan as the market there observed developments in the Indian market before committing to sales.