MARKET NEWS/ RUMOURS

On the dry-bulk front, the BDI continues to reluctantly increase & now stands at the 934 mark this week. London-based Zodiac went on a shopping spree, buying prompt cape resale C PHOENIX (176K BLT 12/2011 RONGSHENG CHINA) for $38.5 mill & 2 modern Japanese controlled panamax sisters SANKO ODYSSEY & SANKO ORION (75K BLT 2010/2011 OSHIMA/JAPAN) for $26.7 mill & $27.2 mill respectively. 

Two more panamax bulkers changed hands this week; Greek buyers have paid the firm price of $16 mill for Lykiardopoulos' AMALIA (75K BLT 2000 HITACHI/JAPAN) compared with 2 years older-Japanese controlled ENERGY PROMETHEUS (74K BLT 1998 IMABARI/JAPAN) which is acquired by clients of Cyprus Maritime of Greece for $12 mill.  We picked up conflicting information that clients of Diana of Greece are the buyers of last week's sale of MINING STAR (76K BLT 2005 TSUNEISHI/JAPAN) for $20.5 mill, while others suggest that she went to clients of East-West Maritime Investments of Greece, en bloc with her exact sister MINERAL STAR, for $21.5 mill each. Vintage cape VOGESAILOR (164K BLT 1996/SPAIN LDT 24,162) found Greek buyers for $11.6-11.7 mill, which is exactly her scrap price in Subcontinent basis $480 per lt. China Shipping's SILVER MEI (68K BLT 1989/SASEBO/JAPAN) changed hands within China for $5.8 mill while she was erroneously reported sold $6.8 mill couple of weeks ago. Clients of Sicuro of Greece have purchased handymax SALVIA (48K BLT 2000 OSHIMA/JAPAN CR 4X25T) for $13.5-14 mill. Handy DIAMOND GLORY (28K BLT 1997/JAPAN CR 4X30T) that was fixed & failed back in February at $9.2 mill to European buyers, is snapped by Syrian buyers for $8.6-8.7 mill. Vintage handysize ALAM SENANG (27K BLT 1984/JAPAN CR 4X25T) also went to Middle Eastern buyers for the excess scrap level of $3 mill.  

In the Tanker segment, we had a very active week; clients of Tanker Pacific are reported to have purchased modern panamax TORM UGLAND (73K BLT 2007 NEW CENTURY/CHINA) freshly out of dry-dock for the price of $22.5 mill, while they have disposed en bloc five of their MRs to Nigerian buyers for $7.25 mill each (PACIFIC AMBER/OPAL/JADE/PEARL/RUBY 46K BLT 1993/94 S. KOREA).

Modern MR unit HIGH PROSPERITY (48K BLT 2006/JAPAN) went to clients of D'Amico of Italy for $22.5 mill while clients of Sonomar of Chile have committed MR unit MARCELA LADY (46K BLT  004/CROATIA) for $21.5 mill subject winning a charter tender. Italian controlled stainless steel unit SC CHELSIA (26K BLT 2000/ITALY 27 TANKS/PUMPS, BOW-THRUSTER) is sold to Tunisian buyers for $12 mill having fixed and failed several times in the past in the region of mid & high teens. Russian buyers have acquired ice strengthened TRANSPACIFIC (5.5K BLT 2001/TURKEY IMO 2/3 ICE 1C) for $6.5 mill while stainless steel unit EURO CORALLO (4.5K BLT 1999/DENMARK ST. STEEL TANKS) is sold for $5 mill to undisclosed buyers. 

In the container/mpp/tween segment, we had another slow week; vintage gearless unit MSC BASEL (45K BLT 1992/GERMANY 2680 TEUS) was sold to clients of China Shipping for $6.5 mill  while eager Indonesian buyers have paid the firm price of $5.5 mill for Japanese controlled geared unit SHIMA (17K BLT 1997/JAPAN CR 2X40T).

In the Demolition sector, oversupply of tonnage is making cash buyers and ship- breakers alike to practice "cherry-picking" of ships, thus driving prices down.

We are hearing of many renegotiations taking place in the market, as subcontinent sentiment is negative with prices ranging at $460 for bulkers, at $480 for tankers & at $490 for Tweendeckers/Containers. This week, we notice large ore carrier FAITH N (260K BLT 1990/ITALY LDT 35,000) hitting Gadani's shores, attracting a price of $16.7 mill ($478 per lt). 

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