Some Brazilian and Chinese shipowners have recently sold their tankers for scrapping at firm rates, underscoring the bullish mood among ship recyclers, market sources said.
Brazilian state-owned energy firm Petrobras is reported to have sold the 153,000-dwt Cartola (built 2000) through its subsidiary Transpetro for about $8.87m, or $388 per ldt.
The price tag is inclusive of the 1,100 tonnes of bunker fuel aboard.
The suezmax, which was sold on an as-is basis for delivery in Galang, Indonesia, will be send to an Indian scrapyard certified under the Hong Kong Convention (HKC).
“India continues to remain competitive and secure its monopolistic share of HKC green tonnage or specialist,” cash buyer GMS said in a note.
Separately, Taihua Ship Management’s 13,800-dwt Taihua Spirit was reported sold for $760 per ldt along with the 1,100 tonnes bunker fuel in its tanks.
The ship, which will also be delivered to an Indian scrapyard, is believed to have fetched a strong price due to its stainless steel content.
“The race for securing tonnage is getting intense due to tight supply and high demand,” said Best Oasis, another cash buyer, in its weekly note.
“The remarkable prices obtained for vessels having stainless-steel content shows the appetite for good quality tonnage in domestic market.”
TradeWinds has approached Petrobras and Taihua for comments.
Firm mood
Tanker demolition rates in South Asia have increased by over 20% since July, boosted by firm steel prices and the resumption of yard operations from the coronavirus pandemic, according to analysts.
In September, the Bangladesh Ship Breakers Association tried to cap prices at $350 per ldt in a bid to halt what it saw as unsustainable levels.
But the group of recyclers were forced to halt the concerted action on 21 November, with other South Asian buyers willing to pay more for scrap tonnage.
“With reduced tonnage in the market, Bangladeshi yards have recently become uncompetitive in comparison to their Indian and Pakistani counterparts,” Clarksons Research said in a note.
“Following the drop in controls by the group, Bangladeshi yards are now in a position to bid for available tonnage at more competitive prices.”
Bangladeshi breakers now have a strong appetite for more tonnage, with their bids approaching the $400-per-ldt mark, cash buyers said.
On the other hand, tanker demolition rates in Pakistan have remained at $380 per ldt in the past week as the county’s breakers appear to take a breather.
“It may be that Pakistani buyers may have to take a back seat to Bangladesh as we approach the end of the year,” GMS said.
