The buying spree is from Finland, Hong Kong, Japan, and Vietnam
Shipbrokers observed a hike in take-ups for smaller-sized vessels. Despite high rates and heightened asset values, this upward trend might just be the prelude for iron ore prices’ rebound.
Booming buyers’ market
China appears to be still taking new orders despite the government’s initiatives to cut steel output. Greece’s Allied Shipbroking observed the Ultramax and Kamsarmax vessels remained popular in China. Italian broker, Banchero Costa concurred in their findings that these classes of vessels are enjoying increased interests. The latter added that the New Dayang Shipyard in China received an order for 4 units of Ultramax from Hong Kong’s Wah Kwong Maritime Transport Holdings at US$30 million each, to be delivered in 2024. Furthermore, Finnish owner AtoB@C Shipping booked 6 units of 5,000 dwt (Ice class 1A fitted) from a Chowgule shipyard in India. They are priced at US$12.64 million each, and due to be delivered in H2 2023-24.
Banchero Costa’s data also revealed Japan’s Kawasaki Kisen Kaisha Ltd committed 8 units of liquefied natural gas (LNG) fuelled 7,000 class car carriers. The order would be equally shared between 3 shipyards: Japan’s Shin Kurushima and Nihon Shipyard, and China Merchants Jinling Shipyard (Nanjing) Company Ltd. These vessels are due to be delivered between 2023 and 2024. The broker remarked that the dry segment market maintained healthy prices on a rise week-on-week basis.
For second-hand vessels, the Panamax ‘Bellamys’ 76,000 dwt 2005 Tsuneishi was sold to a Chinese buyer for US$17.2 million. An Ultramax ‘Sailing Sky’ 61,000 dwt 2014 was sold for approximately US$27.2 million to HTK Shipping and Import Export Company in Vietnam. Another 61,000 dwt ‘Santa Barbara’ 2013 Iwagi was sold last August to another Vietnamese buyer for US$25 million.
Second-hand vessels are holding well for now based on the sales. However, the newbuildings’ movement alone suggests a possible iron ore rebound especially for China, given it is a key ingredient in steelmaking. With that, what lies ahead for the world’s top iron ore producer (Australia) is beyond dicey.
Marine Online News Team
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