Ship recycling sales slowed last week as shipowners and cash buyers refrained from yielding to the falling prices in the face of a deluge of Capesize bulkers being offered for sale.

No sales were reported last week, while prices remained steady at US$370-395/ldt in South Asia.

Dubai-based cash buyer Global Marketing Systems (GMS) said that the South Asian monsoon season, running from June to the end of August, is expected to depress sales too, especially given the volume of Capesize bulkers delivered into both Bangladesh and Pakistan of late.

GMS said, "Capacity in India remains excellent, with 60% of the yards empty and desperate to take tonnage at the right price. The problem is that while local fundamentals continue to remain temperamental, very few end users remain keen to dip back into the market until a sustained period of stability is seen.

"As such, whether they see it or not, now may be the ideal time for end buyers to acquire vessels once again, especially if prices are considered to have bottomed out and will only improve going into the fourth quarter of the year [as is traditional]. Moreover, if owners and cash buyers are willing to sell at present rates, there could be a bargain or two available."

This year to date, 50 Capesizes have been torched while another 12 have been sold for recycling.

The Baltic Dry Index's fall to a historic low in February and the subsequent lacklustre freight market have compelled shipowners to dispose unprofitable and older tonnage.