Ship recycling sales slowed from Aug. 10-14 as China's devaluation of the yuan affected the Indian rupee's stability.

On Aug. 11, the yuan was devalued by nearly 2%, shocking global financial markets.

The Indian rupee then fell to a two-year low, hitting INR65 to the US dollar.

In India, bulkers are being sold for US$280/ldt. Prices have barely moved since falling to below US$300/ldt in July. Cash buyers said they believed the market might have bottomed out.

However, Dignity Shipping's 1982-built Handysize bulker Lina-Y was sold for US$2,031,120 or US$315/ldt, reportedly because the grain-carrier was found to be in good condition on inspection.

Bryan Denizcilik's 1986-built Handysize bulker Umay fetched US$1,687,894.50 or US$316.50/ldt.

Both ships were sold to Indian interests.

It remains to be seen if these levels can be maintained in light of world economic developments.

Meanwhile, five members of the Bangladesh Ship Breakers Association have formed a cartel in the hope of restoring earnings.

Dubai-based cash buyer Global Marketing Systems however, thinks this will be tough unless prices become competitive enough to attract tonnage.

It was also quiet in Pakistan as the market there observed developments in the Indian market before committing to sales.