This will occur on the back of looming SS/DDs and a natural vessel end of life approaching, said GMS in its weekly report.
It remains uncertain how long the current high price levels paid will be maintained or even if the price levels continue to firm. However, an array of increasingly desperate and speculative cash buyer offerings would seem to suggest otherwise.
Tanker supply is expected to continue at the same pace as seen recently in what has been a busy year for this sector, thus far. However, the hot work issue is still a pressing one given that stricter requirements are now mandatory in both Bangladesh and India and wet units remain banned from Pakistan for the time being.
Local steel prices and currencies were stable to positive across all breaking regions, except in Turkey, where steel plate levels declined by about $10 per tonne, resulting in vessel offers falling below the $300 per ldt mark, GMS concluded.
Deals that were reported recently included the 1997-built Suezmax ‘Blue Trader’ reported taken by Bangladesh interests for $378 per ldt, the 1991-built MR ‘Alors’ believed sold to either India or Bangladesh recyclers for $405 per ldt on the basis of ‘as is’ Fujairah ‘gas free for hot work’ and the 1987-built Handysize ‘QT One’ thought sold to Bangladesh interests for $371 per ldt.