Cash buyers showed a willingness to acquire ships for demolition last week, amid talks that the Indian government would impose import taxes on Chinese steel.

Improving local steel prices and a stabilising Indian rupee also saw scrap prices rising by at least US$20/ldt.

Dubai-based cash buyer Global Marketing Systems (GMS) commented, "Capacity remains very good locally and it is encouraging to finally see end buyer enquiries emerge for all types of vessels in the subcontinent again. Consequently, several market sales took place this week at improving rates and a number of other units were under negotiation at speculative levels as cash buyer competition ramped into overdrive once again."

Prices in Bangladesh improved to US$380/ldt for bulkers and US$400/ldt for tankers, compared with US$365/ldt and US$385/ldt two weeks ago.

Arpeni Pratama Ocean Line's 1990-built Panamax bulker Citrawati fetched US$3,711,630 or US$390/ldt, while Pacific International Lines' (PIL's) 1992-built multipurpose carrier Kota Berlian was committed at US$2,975,600 or US$400/ldt.

Brokers said that having acquired quite a number of Capesize bulkers since the start of the year, cash buyers and scrapyards have been slowing down their purchases of such ships. However, this should change if scrap prices hold up.

Meanwhile, prices in India improved to US$370/ldt for bulkers and US$390/ldt for tankers, compared with US$350/ldt and US$370/ldt two weeks ago.

GMS said, "Moreover, with yard capacity standing at almost 60% following a period of market decline and inactivity, now seems like the ideal time for many local recyclers to jump back into the buying."

PIL also offloaded another multipurpose carrier, its 1993-built Kota Berjaya, for a decent US$2,905,875 or US$405/ldt.