Second-hand values held steady through the opening week as markets absorbed geopolitical uncertainty and reshaped trading patterns, while newbuilding activity remained muted and demolition demand picked up sharply across recycling centres worldwide.
The tanker secondhand market opened with a significant transaction in the largest segment, a marker of confidence despite macroeconomic headwinds. Two Very Large Crude Carriers, DHT Europe and DHT China, both around 317,700 dwt and built in 2007 at Hyundai Samho, were sold en bloc at $101.6 million. The transaction included a structured time charter at $1.1 million per month with Exxon extending through the first quarter of 2027, indicating confidence in placement for the pair and providing income stability through an uncertain period.
Activity in the liquified petroleum gas segment also registered across the price curve. The 2015-built Very Large Gas Carrier Navigare Generosa, 54,564 dwt, changed hands at $80.0 million, reflecting sustained value for modern tonnage in the LPG space. A smaller VLGC, Jag Vishnu at 49,996 dwt and built in 2002 at Kawasaki Shipbuilding, traded at $42.0 million. The differential between the modern and older units reflected standard vintage depreciation patterns in an otherwise stable pricing environment, with buyers showing selectivity for newer tonnage.
Demolition levels in tanker tonnage firmed modestly across major recycling centres. India and Bangladesh maintained prices at $430 and $400 per light displacement tonne respectively, unchanged from the prior week baseline. Pakistan held steady at $420 per LDT, while Turkish scrapyards eased to $280 per LDT from $350 the previous week, indicating softer demand at that location as buyers assessed recycling options. The week saw no reported demo sales in the tanker segment.
Dry bulk secondhand values showed resilience as first-quarter momentum supported active replacement demand from operators. The Capesize segment saw the 2019-built Seacon Shanghai at 80,811 dwt trade at $26.7 million, a transaction point reflecting active buyer appetite for modern tonnage in the largest dry bulk class despite broader freight rate uncertainty. The trade provided a reference point for the modern Capesize curve at a time when operators continue to evaluate fleet modernisation options.
Demolition pricing across dry bulk improved notably week-on-week. India held at $450 per LDT, matching the previous week without movement. Bangladesh rallied to $700 from $600, the week’s strongest move in the scrap grid and signalling renewed buyer appetite at South Asian facilities. Pakistan maintained $400 per LDT with stable momentum. Turkish recycling dropped sharply to $350 from the prior week’s $500, signalling varied appetite across the key breaking centres and suggesting tactical weakening in demand at that location. The volatility in Turkish pricing indicated charterers and sellers were exercising flexibility in choosing recycling destinations based on weekly price movements.
Demolition sales activity expanded as end-of-life economics came into clearer focus and aging tonnage was repositioned. The 1993-built Bulk Carrier Chang Ming Yang at 99,761 dwt sold for $380 per light displacement tonne into China, a representative price for vessels of that age and size in the current market. A second Bulk Carrier, Rui Tiger at 70,136 dwt from 1995, was reported without a disclosed price, suggesting either confidential terms or a deal still pending final confirmation. The General Cargo vessel Gold Origin at 8,300 dwt and built in 2005 transacted at $330 per LDT, reflecting the softer pricing typical for smaller general cargo tonnage in the demo market.
Price variance across recycling jurisdictions reflected both the underlying commodity value of scrap steel and the day-to-day availability of purchase tonnage at each location. Higher pricing in Bangladesh relative to Pakistan and Turkey suggested stronger buyer competition at South Asian facilities and better market access. Turkish scrapyard weakness late in the week indicated temporary softening in Turkish demand for tonnage, likely reflecting inventory management following earlier strong activity. The week demonstrated that demo pricing remains responsive to local supply and demand dynamics at each recycling centre.
