Demolition tanker rates soar to 12-month high.
Wet and dry markets heat up as Bangladesh breakers pay high$400s per ldt for ships.
Breakers in Bangladesh have pushed demolition rates into the high $400s per ldt, their highest levels in the past 12 months.
Prices for scrap ships have risen consistently since late 2009, with buyers in the Indian subcontinent bullish in the pre-monsoon rush to secure tonnage.
The northward drift has been particularly evident since Indian breakers pushed past the $400 per ldt barrier in late January.
This week it was the turn of Bangladeshi breakers, whose appetite for wet tonnage prompted strong rates for a string of tankers.
Chittagong rates for tankers are currently the highest in the market, hovering around the mid- to high-$400s per ldt.
India and Pakistan are offering around $420 per ldt for wet tonnage, while prices for dry vessels in all three countries follow close behind.
?Not since the summer of 2008 have we seen such positive levels for every type of older vessel as demand, steel prices and local buyer sentiment have all hit peaks recently and speculation is rife that the market could yet go higher,? said US-based cash buyer GMS.
Pick of the week went to Tsakos Energy Navigation"s 1990-built, 16,350 ldt tanker Hesnes , which was reported sold to a Chittagong buyer on an "as is" basis in Singapore for $465 per ldt, or $7.6m.
A second tanker, the 1986-built, 12,770 ldt Al Farabi , operated by United Arab Chemical Carriers, was also reported sold to Bangladesh on an "as is" basis in Singapore for $470 per ldt. The rate, the equivalent of $6m, was pushed up by 130 tonnes of stainless steel on board.
In a third market sale to Bangladesh, the 1981-built, 14,134 ldt car carrier Car Bridge I , operated by Ofer, was reported sold to a Chittagong buyer on private terms.
The number of purchases by Indian buyers has eased off compared to the first two months of the year, but breakers in Alang continue to be active in the marketplace.
In a deal that illustrates the strength of current sentiment, Tropis Shipping"s 1974-built, 3,891 ldt general cargoship San Sebastian was reported sold to an Indian buyer for $432 per ldt, or nearly $1.7m.
The 1977-built, 10,713 ldt general cargoships Global Progress and Global Prosperity , both operated by Gulf Liner Shipping Agencies, were reported sold to an Indian buyer on private terms.
Pakistani breakers remain positive about their prospects, particularly given the number of units sold into Bangladesh and India over recent weeks.
That makes Gadani yards an attractive option for cash buyers looking to place vessels.
Last week, the 1975-built, 3,147 ldt general cargoship Geni 3 , operated by Ademar Shipping Lines, was reported sold to a buyer in Gadani on private terms.
In the Far East, Chinese breakers are also bidding aggressively for tonnage, though rates are somewhat lower than in the Indian subcontinent.
Prices for wet ships in the Chinese market are currently in the high $300s per ldt.
In the only market sale to China reported last week, the 1985-built, 13,140 ldt containership Tower Bridge , operated by Kawasaki Kishen Kaisha, was reported sold for $360 per ldt, or just over $4.7m.