Cash buyers stand accused of ramping up demolition prices to unrealistic levels and negating the attempts of South Asian shipbreakers to bring prices down to compete with cheap imported steel products.
The sale of the Mitsui OSK Lines (MOL)-controlled 155,000-dwt capesize Tsunomine (built 2000) for $340 per ldt last week raised the most concern that cash buyers are putting a false floor under the market to support prices.
