Indian scrap prices have seen a slight uptick after several deals were clinched.
But any upturn may well be temporary and some eye-catching reported levels are largely due to bunkers and other materials remaining on board the vessels, sources said.
Brokers reported Malaysian owner Unifleet sending its 4,200-cbm ethylene carrier Gas Dollart (built 1990) to Indian breakers at $700 per ldt, or $1.74m.
The ship has a high but undisclosed quantity of special materials on board, however, explaining the price.
VesselsValue assesses the gas ship as worth $3.07m for further trading or $1.35m for scrap.
Liner giant MSC Mediterranean Shipping Company, meanwhile, is said to be torching its 2,078-teu MSC Chiara (built 1987) for $535 per ldt, or $7.7m
This boxship is destined for green recycling in India in compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
The price includes 350 tonnes of bunkers still on board.
Demolition broker Ed McIlvaney said: “The market continues to struggle, with domestic steel prices fluctuating constantly.”
Only an improvement right at the end of last week showed signs of a move forward on pricing, he argued.
Not sustained?
“It is not currently believed that this improvement will be sustained for a lengthy period. Hopefully, this assessment does not prove to be accurate,” the broker added.
Elsewhere, the 45,700-dwt handysize bulker Wu Yang Goddess (built 1995) was reported sold at $480 per ldt, or $3.6m.
The seller is Xiamen Xinjunhai Marine Management.
The ship was bought “as is” in China, with 500 tonnes of fuel left in its tanks.
Cash buyer Best Oasis said the market in India witnessed a decline initially, but towards the end of the week, there was a little improvement.
“However, it is important to note that this improvement is expected to be temporary in nature,” the company added.
Bangladesh buyers are still facing substantial challenges in obtaining letters of credit from lenders due to a balance of payment issue, with US dollar reserves in short supply.
“Consequently, only a limited number of purchasers in Bangladesh are able to effectively navigate this situation,” Best Oasis added.
