Demo rates are crossing the $600 per ldt mark, setting highs not seen since 2008, the end of shipping’s last great bull-run.

“Firmer steel plate prices and an increasing lack of available tonnage has invariably pushed sub-continent offerings on to previously unthinkable levels,” cash buyer GMS noted in its latest weekly report, pointing out that demo prices have doubled in the space of one year. Data from Clarksons Research shows scrap prices have leapt by 40% since the start of 2021.

The supply of tonnage has been increasingly centred around offshore units and tankers of late.

Hitesh Vyas, vice president at cash buyer Wirana, said the scarce supply of tonnage for demolition was set to continue, propping up today’s sky high rates.

Demand from Pakistan and Bangladesh is leading the way with cash buyer Best Oasis describing the prices on offer as “unprecedented”. India has not been able to keep pace with its aggressive demo neighbours.

In the year to date, 362 vessels of 13.6m dwt have been reported sold for recycling globally, according to data from Clarksons.