The sale of another large bulker for scrap has added to the optimism in the demolition market.
Following recent sales of VLOCs by Berge Bulk and Polaris Shipping, several brokers in London and Athens have reported that Greece’s Golden Union has offloaded the 172,500-dwt capesize Crassier (built 2000).
The Theodore Veniamis-led company did not immediately respond to a request for comment. If confirmed, the demolition deal would be the first for a big Greek-controlled bulker since last summer.
Some brokers said the Japanese-built Crassier fetched $406 per ldt, or about $8.5m, in a sale to the Indian subcontinent. Others reported a price of $402 per ldt to Bangladeshi buyers.
Prices above $400 per ldt may be proving attractive to owners of bulk carriers, given weakening freight rates for such ships.
“The first full week of 2020 looks to have brought back some optimism to the recycling market, with increased demand across the waterfront,” Clarksons said in its latest weekly report.
Rising steel prices
Another reason for active cash-buying is rising steel prices, especially in Bangladesh. “Recyclers are actively booking new tonnages available,” major cash-buyer Best Oasis said in its latest report.
Among the deals reported over the past few weeks, Berge Bulk offloaded the 268,000-dwt Berge Hua Shan (built 1993) and the 290,000-dwt ore carrier Berge Vinson (built 1990).
In December, South Korea’s Polaris Shipping sold the 267,000-dwt VLOC Stellar Journey (built 1994). The 135,000-dwt bulker Bank (built 1994), previously controlled by South Korea's H-Line Shipping, was reportedly sold in Bangladesh at an undisclosed price.
"One welcome surprise has been reports suggesting that Pakistan is once again a viable recycling alternative to India and Bangladesh, although some sales to this destination are needed for this to be confirmed," Clarksons said.
Veniamis has not sold a ship for demolition since November 2014, when he offloaded the 88,300-dwt post-panamax bulker Aghios Makarios (built 1987) in Pakistan for $460 per ldt.
If the Crassier sale is confirmed, the next likeliest demolition candidates in the Golden Union fleet could be the 171,400-dwt Captain Veniamis (built 2001) and sistership CIC Pride (built 2002).
