A market in limbo

The ship demolition market is plagued by a high level of uncertainty leaving the market analysts in limbo when it comes to discerning which direction the market will take.

Despite the lack of tonnage, reports suggest that there is a general apathy from the actual ship recyclers making it very hard to judge market sentiment, Clarksons Plateau said in its latest shipbroking report.

“Asking cash buyers for an indicative price in today’s market for a particular vessel is intriguing at this time. Without any real transparency and confidence, the price differential between varied cash buyers could be a $US20 ($F41.56)/LDT gap,” Clarksons added.

“Thus, only when several sales are reported do we ascertain the true value of a unit and market sentiment.

“We certainly had expected to see more supply than is currently being witnessed, however with the dry freight rates now seeing a negative change, a shift of owners mentality towards the recycling market may be seen.”

The shipbroker reported that last week the 1986-built bulk carrier Gulmar of 27,652 dwt was sold to a shipbreaking yard in Pakistan for $US390 ($F810) per LDT.

Aside from Gulmar, the 1979-built Mikhail Kutuzov featuring 23,169 dwt was also sold for scrap in Bangladesh fetching a price of $US373 ($F775) per LDT.

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