Falling steel plate prices in the Indian sub-continent have muted recycling activity, but some owners are still finding scrap buyers.
Brokers reported Singapore owner Nova Shipping’s 44,000-dwt woodchip carrier Shandong Express (built 1989) sold at a higher than expected level of $605 per ldt into Bangladesh.
Demolition broker Ed McIlvaney noted the ship has nearly 400 tonnes of low sulphur bunkers on board, which helped the seller secure the “rich” price of $5.2m.
He called the market “sluggish” overall, however.
The 22,000-dwt open-hatch handysize bulker Hao Hang 3 (built 1991) has also been sold on a private basis in China, with the ultimate destination likely to be Bangladesh as well.
The seller is Anhui Haohang Shipping of China.
And potentially heading for green recycling in India is Evergreen’s 4,211-teu boxship Ever Diadem (built 1998) at $514 per ldt, or $11m.
Cash buyer Wirana said that while ship recyclers had maintained the same price levels for fresh tonnage, they remain cautious, with a tendency to push prices lower.
“However, in view of slow supply of tonnage, we would expect prices to remain stable with a possibility of firming up,” the company added.
Wirana noted unconfirmed market information that there could be significant delays for new containerships from South Korean shipyards.
Deliveries pushed back?
This could push some 2023 deliveries into 2024 and may delay expected recycling candidates from the container segment being placed in the market, it believes.
The cash buyer expects the flow of vessels to recyclers to remain slow, with some more boxships and bulkers being offered.
Clarksons Research said India remained the most stable recycling destination at present, though scrap prices in Bangladesh have stabilised this week after a recent fall.
“Meanwhile, activity in Pakistan remains extremely limited against the backdrop of ongoing political instability, whilst sentiment in the Turkish recycling market was negatively impacted this week by the general election,” the UK company said.
