EXPERTS predict the sale of vessels for the demolition market in the Indian subcontinent may have already peaked and won't recover until after the summer.
The warning from US-based cash buyer GMS comes after strong sales in the demolition market last week, with two vessels sold for US$500 per light displacement ton (ldt), the weight of a ship excluding cargo.
Firm domestic steel prices and strong exchange rates for the Indian rupee against the dollar had helped to maintain positive sentiment in India.
A similar picture was evident in Pakistan, where breakers again dipped deep to purchase ships at solid prices, reported Lloyd's List.
India remained the market of choice, with shipowners able to secure top-end rates on a range of ship types.
Pick of the sales was Danaos' 1992-built, 22,148-ldt containership Commodore, sold to Alang at the reported rate of $510 per ldt, or $11.3 million.
In another high-priced deal, the 1984-built, 5,706-ldt bulk carrier Aashman, operated by Accord Ship Management, was sold to India for $505 per ldt, or $2.9 million.
Bulk carrier Sea Pioneer Shipping's 1983-built, 5,213-ldt ACJ Pride, was also sold to India at the rate of $482 per ldt, or $2.5 million.
Pakistani buyers lagged slightly behind their Indian rivals on rates but nevertheless continued to push toward the $500 benchmark.
The 15,301-ldt tanker Kappa was sold as-is Fujairah for $490 per ldt, or $7.5 million.
In another deal bound for Pakistan, Delfi's 1989-built, 8,653"E-ldt product tanker Ermar was sold for $472 per ldt, or $4.1 million.
"Concerns remain regarding the current bullish and over exuberant rates being paid, particularly with many cash buyer vessels still unsold and sky high asking prices yet to be met.
"Elections in India, budgets in both Pakistan and Bangladesh, and the dreaded monsoon season, which sees a traditional cooling in levels, all lingering on the horizon," said GMS.