A Chinese shipowner is to scrap two of its oldest handysize bulkers after inking a demolition deal worth more than HKD 39.9m ($5m).
China Shipping Development expects to pocket around HKD 18m from the sale of the 18,900-dwt sisters Hong Qi 202 and Hong Qi 203 (both built 1980) and expects to use proceeds for working capital. 
In a regulatory filing the China Shipping affiliate said the transaction assumes a combined net book value of approximately HKD 21.8m as of 29 February and was based on a rate of roughly $407 per ldt, a bit lower than the level seen when it scrapped a similar pair late last year.
The company identified the buyer as Digang Dili, which specialises in dismantling and recycling ageing tonnage. Both parties are affiliates of Asian logistics giant China Shipping.
The torch is scheduled to spark by early June when the pair arrive at Digang’s domestic scrap yard.