Ship scrap prices in South Asia are set to go down again as increasing number of owners are recycling Capesize bulkers.
Amid the ongoing downturn in the freight market, owners are choosing to recycle more of their older Capesizes to minimise losses.
However, with more ships being offered to cash buyers, prices are set to drop, said Dubai-based cash buyer Global Marketing Systems (GMS).
While prices remain at USD380-390/ldt for bulkers in India, Pakistan, and Bangladesh, levels could come off by USD10-15 in the coming weeks, estimated GMS.
No fewer than four Capesize bulkers were sold for recycling last week, according to shipbrokers’ reports.
Last week, Alpha Tankers & Freighters-controlled 1994-built Alpha Action was sold for USD7.86 million or USD422/ldt, and Sea Pioneer Shipping’s 1995-built Prosperity fetched USD8.34 million or USD420/ldt, both for demolition in Pakistan.
Star Bulk Carriers’ 1996-built Star Big fetched USD9.24 million or USD420/ldt for demolition in Bangladesh. Other than that, TMT’s 1993-built Glory Comfort fetched USD7.21 million or USD390/ldt.
Nicholas G Moundreas Shipping’s 1996-built Matrix fetched USD9.60 million or USD420/ldt for demolition in China.
Berge Bulk-owned 1987-built very large ore carrier Berge Vik was sold for USD19.89 million or a very firm USD430/ldt in Pakistan.
The Angelicoussis group recycled its fourth bulker for the year, offloading Panamax bulker Anangel Omonia on an ‘as is’ basis in Fujairah for USD4.19 million or USD400/ldt, with sufficient bunkers for the voyage across to Pakistan.