SCRAPPING has surpassed record rates set in 2008 as steel prices soared among Indian subcontinental ship breakers despite government-imposed Covid lockdowns, reported London's Lloyd's List.
Pakistani buyers will pay as much as US$580 per light displacement tonne (ldt) for containerships, with the $600 per ldt mark soon to be breached for all tonnage types in such a firm market, according to cash buyer GMS.
Prices were nearly double the same period a year ago and already up 40 per cent for tankers and 24 per cent for bulk carriers, according to Baltic Exchange data.
"Far from the traditionally expected slowdown during the monsoon and summer months, subcontinental recycling markets fired on at pace once again and a slowdown in the supply of tonnage of late is likely contributing to some overly aggressive offerings from hungry end-buyers," GMS said in its report.
Some 134 ships (all over 10,000 dwt) totalling 11.2 million dwt were scrapped in the first half of 2021, Lloyd's List Intelligence data shows. That is up 15 per cent compared with the same period of 2020 and is just five per cent lower than 2019 levels.
Prices paid for recycling were last seen at this level in September 2008, just before the global financial crisis, in a year when record-breaking charter rates regularly topped six figures for bulk carriers and tankers, deterring owners from scrapping their vessels.
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