Speculation belies uncertainty in shipbreaking market
Despite uncertainty over steel plate prices and demand for scrap steel, cash buyers continue to overpay to recycle ships in India and Bangladesh, just to keep up with Pakistan.
With prices averaging $460/lt ldt for bulkers and $490/lt ldt for tankers, Pakistan continues to be the market of the moment. The firm prices in Pakistan saw the usual favoured tankers being sold for high prices.
Overseas Shipholding Group’s 1994-built Aframax tanker Overseas Eliane sold for $8,573,100 or $510/lt ldt and Onassis Group’s 1991-built Suezmax tanker Olympic Flair $12,039,825 or $525/lt ldt.
Prices in India and Bangladesh are trailing Pakistani levels by $5/lt ldt and $10/lt ldt. Dubai-based Global Marketing Systems, the world’s biggest cash buyer said, “India, despite the volatility of recent times, had to keep their rates not too far from the Pakistan action, just to secure any ships at all.
With hundreds of recycling yards to satisfy and comparatively few vessels making it to the shorefront, it was important for Indian buyers to at least stay in the hunt on working vessels.
“Chittagong buyers, however, continue to struggle with their Indian sub-continent counterparts. With much of the existing inventory (steel, non-ferrous, and other materials) not shifting from yards due to a slowdown in development projects (in part due to the massive flooding seen this monsoon, prices are not expected to pick up significantly any time soon.”
GMS however, cautioned, that slots in Pakistan might be getting full, as scrap yards are now cherry-picking tonnage.
