How the price of a vessel sold for scrap is set, and which factors carry the most weight when assessing it.
The basis of pricing in the scrap market is lightweight displacement (Lightweight or LDT), and prices are usually quoted in US dollars per tonne of LDT. Even so, the mix of metals, the condition of the engine room and the equipment that can be recovered can make a significant difference to the final price.
Fluctuations in the global steel price, environmental regulations on ship recycling, and the cost of moving the vessel to the breaking yard are three external variables that affect the final price.
Registration particulars and documents alone do not give an accurate picture of the vessel's real condition or its lightweight. Have a pre-purchase (condition) survey carried out by a marine surveyor before the deal is finalised.