Chinese scrap yards rival India's as retired box tonnage rates rise BUYER demand for ship breaking continues to accelerate among Chinese shipbreakers with rates per scrap light displacement tonnage (ldt) - being the weight of the ship - hitting pre-lunar new year levels, and a few exceeding those.
Despite signs of weakening prices, the "aggressive competition from their counterparts in the Far East may help to improve the sentiment from the Indian subcontinent," said London-based Clarkson Research Services.
Firm sold prices in the Far East haves reached the height of US$405 per ldt for the 1993-built 24,308-light displacement ton Haina that sold for $9.8 million. A Chinese scrap buyer snapped up the Hanaro Shipping's 1984-built, 11,953-ton bulk carrier Green Ocean at $390 per ton, or nearly $4.7 million.
Rates for containerships from Indian scrap yards were higher still at $435 per ldt, or $3.2 million for the 1994-built, 7,308-ton Renate Schulte, operated by Schulte-Hamburg.
Another deal made in Singapore for delivery to India set $425 per ldt or $8.3 million for the Hanseatic Lloyd's 1995-built, 19,520 ldt box ship HLL Baltic, which included 250 tonnes of bunker fuel on board.
Despite some prices being renegotiated by cash buyers unable to deliver agreed prices on arrival in Alang due to currency issues and weakened domestic steel prices, India is still the main market for demolition in price and activity. Rates at Bangladesh breakers were on a par with India at $420 per ldt and $410 per ldt for bulk carriers. Pakistan's only recent sale reached a higher rate of $430 per ldt or $5.1 million for a 1981-built, 11,976 ldt panamax bulk carrier Haydar, operated by Denak Depoculukl. The lack of deals for both countries, since the start of 2013, is put down to lack of options on tonnage favoured by buyers.
Despite signs of weakening prices, the "aggressive competition from their counterparts in the Far East may help to improve the sentiment from the Indian subcontinent," said London-based Clarkson Research Services.
Firm sold prices in the Far East haves reached the height of US$405 per ldt for the 1993-built 24,308-light displacement ton Haina that sold for $9.8 million. A Chinese scrap buyer snapped up the Hanaro Shipping's 1984-built, 11,953-ton bulk carrier Green Ocean at $390 per ton, or nearly $4.7 million.
Rates for containerships from Indian scrap yards were higher still at $435 per ldt, or $3.2 million for the 1994-built, 7,308-ton Renate Schulte, operated by Schulte-Hamburg.
Another deal made in Singapore for delivery to India set $425 per ldt or $8.3 million for the Hanseatic Lloyd's 1995-built, 19,520 ldt box ship HLL Baltic, which included 250 tonnes of bunker fuel on board.
Despite some prices being renegotiated by cash buyers unable to deliver agreed prices on arrival in Alang due to currency issues and weakened domestic steel prices, India is still the main market for demolition in price and activity. Rates at Bangladesh breakers were on a par with India at $420 per ldt and $410 per ldt for bulk carriers. Pakistan's only recent sale reached a higher rate of $430 per ldt or $5.1 million for a 1981-built, 11,976 ldt panamax bulk carrier Haydar, operated by Denak Depoculukl. The lack of deals for both countries, since the start of 2013, is put down to lack of options on tonnage favoured by buyers.