Extremely aggressive buying by Bangladeshis in particular is driving ship demo rates towards the $400 per ldt mark, heights not seen since April 2015.
The highest rate paid recently among many broking reports checked by Splash has been $367 per ldt.
Moreover, Pakistan, starved of business for a while, is anticipated to give its Bangladeshi neighbours a run for its money this week to snap up tonnage.
“In our view it is unlikely that scrap prices will cross $400per ldt,” said a spokesperson for cash buyer Wirana, who felt the rally would last through the second quarter this year.
“All in all, in the following weeks it will be interesting to witness prices breaking $400 per ldt after a long time,” brokers Intermodal mused in its latest weekly report, adding: “With no capesizes or VLCCs being reported it is interesting to see how the market will perform with bigger tonnages as it is extremely firm with prices edging ever close to the $400 per ldt mark.”
Clarksons Research, meanwhile, said in its most recent weekly report that interest from some cash buyers has “gone through the roof” with vessels being circulated achieving a speculative premium.