Recycling sales have dwindled as cash buyers resist an attempt by some Bangladesh breakers to limit prices.
The Bangladesh Ship Breakers Association formed what some market players are calling a "cartel" in September to keep levels below $350 per ldt, when Pakistan is paying up to $37 per ldt more for old vessels.
Demolition broker Ed McIlvaney said recently that the market had been "quietish", with a limited number of sales concluded.
He put this down partly to the recent strength in bulker and boxship freight rates, which is tempting owners to hold on to elderly units.
But he added: "One other factor which is not helping price levels is that there are reportedly a number of cash buyers still holding a portfolio of unsold units, resisting the levels being quoted by the Bangladesh cartel.
"As a consequence, fewer vessels are being concluded into this sector."
Pressure building?
But the broker said that, with many yards rapidly emptying, something will definitely have to change.
The group secured one vessel last week, Syslink Holdings' 5,652-ldt handysize bulker Lucky Seaman (built 1991) at $348 per ldt.
This is below the group's reported price cap of $350 per ldt.
However, Pakistan continues to dominate price levels, securing two Pacc Ship Managers' multipurpose sisterships, the 10,033-ldt Pac Adara and 10,250-ldt Pac Alkaid (both built 2003), en bloc at what brokers called a "premium" level of $387 per ldt.
The Gunkul Trading & Agency general cargoship 6,367-ldt Kulnatee (built 1997) has also been committed to Pakistan at $360 per ldt.
SSY Research, the analysis arm of UK shipbroker Simpson Spence Young, said the Bangladesh group wants to curb overenthusiastic ship recyclers who were paying prices that were not sustainable in the local market.
Earlier in October, Karya Sumber Energy's 8,002-ldt KT 06 (built 1994), was reportedly sold to Bangladesh at $370 per ldt, however, showing that the group does not speak for all breakers in the country.
Two other vessels were identified as committed to the group earlier this month: Liberty Shipping's 3,626-ldt research ship Mahsuri (built 1972) and Karya Sumber Energy's 7,440-ldt bulker Shanthi Indah (built 1996).
The pair were reported sold at $345 per ldt.
