Ship recyclers in Pakistan have made a comeback in the market, buying two bulkers in the first demolition deals of any significance for the country since January.
Reported sold to recycling facilities in Gadani over the past week were Yongning Shipping of China’s 48,100-dwt Yong Ning (built 1996) and Larus SA of Greece’s 75,300-dwt Sotiria (built 1997).
Cash buyers and demolition brokers said the deals were made possible because several Pakistani banks were able to open letters of credit for recycling deals following the lifting of restrictions on non-essential imports.
The Sotiria was said to have been sold for $545 per ldt, a price on par with offers for bulker tonnage coming out of Bangladesh.
The Yong Ning was sold for a substantially lower $500 per ldt, which cash buyers Best Oasis, Wirana and Singapore-based Star Asia Shipbroking said is more indicative of what Pakistani ship recyclers are willing to pay provided they can secure letters of credit.
The decline of the Pakistani rupee following the lifting of import restrictions was said to be eroding profit margins, with most ship recyclers at Gadani unwilling to offer more than $500 per ldt.
Nevertheless, letters of credit are said to have been secured for at least three more ships that are currently under negotiation for sale to recycling facilities at Gadani.
The last ship of any significant size sold for recycling in Pakistan was Fams Venture Holdings’ 42,000-dwt bulker Asa Nadiya (built 1990), which was sold in January for an undisclosed sum.
VesselsValue data indicates that the only deals since then were for a platform supply vessel and a small 4,800-dwt product tanker.
No ships have been sold for recycling in Pakistan since June.
Ship recyclers in Bangladesh continued to offer the highest prices for the limited vessels being made available for scrap, but managed to pick up only a single handysize bulk carrier and a feeder-size container ship.
Hong Kong-registered Ever Success International was said to have sold its 27,300-dwt bulker Winda (built 1995) on a delivered Chattogram basis.
Norse Shipholding of Singapore’s 1,064-teu container ship Cherry (built 1998) was sold “as is” in Singapore with 350 tonnes of bunker fuel on board for delivery to Chattogram for $545 per ldt, or $3.24m.
Indian ship recyclers topped their Bangladeshi counterparts by acquiring a handymax bulker, a reefer and a feeder-size boxship.
Sold to Alang was Turkish owner One Navigation’s 45,500-dwt bulker One Happy (built 1995), which went for $498 per ldt, or $3.8m, together with South Korean owner Sein Shipping’s 4,200-dwt refrigerated fish carrier Sein Star (built 1984), sold for an undisclosed sum.
Also reported as heading for Alang was Indonesian domestic liner company Meratus Line’s 1,404-teu container ship Meratus Medan 3 (built 1990), which was sold on an “as is” Singapore basis for $510 per ldt, or $3.45m. Included in the deal was 100 tonnes of bunkers on board.
