There was a strong buzz in the ship recycling market over the past week as reports emerged that a Sinokor Merchant Marine container ship had been sold to an undisclosed cash buyer for $612 per ldt, a price not seen from India in many months.
The price paid for the 1,282-teu Fortune Trader (built 1994), which netted the South Korean shipowner $4.3m, shows that Alang is firmly back in the lead, offering prices that Bangladesh and Pakistan cannot match, multiple ship recycling sources said in their latest market reports.
The Fortune Trader was sold on a delivered Alang basis with 120 tonnes of bunker fuel remaining on board. It is one of three container ships snapped up by Indian ship recyclers.
However, not all market observers are convinced the Fortune Trader is a price-setting deal, suggesting instead it is an anomaly.
Cash buyer GMS described the “unbelievable” deal in its latest market report as a “definite above-market play by the concerned cash buyer”.
“Levels are certainly not there yet today,” GMS cautioned.
More indicative of current Alang pricing was a deal involving the MSC Mediterranean Shipping Co-controlled 645-teu roro-container ship MSC Maria (built 1993), which was sold for strict green recycling at an MSC-approved yard in Alang for $547 per ldt, or $2.16m.
Maxwin Assets Holding’s 1,169-teu GSS Yangon (built 1993) was sold on an as-is Singapore basis at $530 per ldt, or $3.1m.
Alang’s ship recyclers also had a busy week buying tonnage outside of the container ship sector.
The largest ship acquired by Alang recyclers was a Cosco Shipping Bulk panamax, the 71,300-dwt Ya Tai 1 (built 1995), which was sold on an as-is basis in Guangzhou at $475 per ldt, or $10.87m.
Dubai-based Alpha Metallum DMCC’s 46,750-dwt bulk carrier Haseen (built 1998) was also sold to an Alang recycling facility for an undisclosed price, while Northwest Ship Management’s 1,400-dwt general cargo ship Angel-A (built 1988) was bought for $500 per ldt.
Bangladesh standstill
Although struggling to compete with India on price, one Chattogram-based ship recycler was able to acquire tonnage in the form of Bangladeshi shipowner Brave Royal Shipping’s 45,200-dwt bulker Fatema Jahan (built 1995). Some market sources claim the deal was contracted in Bangladesh’s own currency, the taka.
Singapore’s Star Asia Shipbroking said buying activity in Bangladesh has come to a standstill and arriving ships are encountering long delays at anchorage points due to issues related to letters of credit.
