MSC Mediterranean Shipping Company has sent another veteran container ships to India for recycling.
The 1,879-teu MSC Adele (built 1986) has been sold to a company-approved ship recycling facility at a time when scrap prices being offered out of India are rising on the back of plans to impose tariffs on cheap Chinese imported steel.
The vessel, which arrived off Alang on Tuesday, was reported to have been sold for $501 per ldt, or $4.4m in total.
This is slightly less that the $504 per ldt achieved in mid-September when the 1,893-teu MSC Gabriella (built 1985) and 1,524-teu MSC Agata II (built 1994) were sold to Alang ship recycling facilities.
The timing of the sale came just before scrap prices offered out of India staged a rebound on the back of firming Chinese plate prices.
Chinese steel billets “still [plague] the local market”, according to the latest report by cash buyer GMS, which noted that recent government announcements on economic stimulus in the property market have seen China’s steel price climb by about $5 to approach $500 per ton.
The competitiveness of Chinese steel could be eroded further if India doubles the basic customs duty on imported steel from 7.5% to 15%.
India’s Ministry of Steel is reportedly discussing the proposal with the finance ministry.
Scrap prices increased by $9 per tonne over the past week, according to cash buyer Wirana Shipping, which noted that the MSC Adele’s very prompt delivery meant it may not have been able to attract improved price levels seen towards the end of the week.
Despite the price increase, the MSC Adele was the only ship reported to have been sold for recycling in India last week.
GMS lamented that although scrap prices are firming and recyclers are keen to buy, strong shipping markets mean there is nothing for them to bid on.
