ShipRecycling:: GDSA Weekly Demolition Market Analysis for Week 32 of 2011:

16 August 2011

GDSA Weekly Demolition Market Analysis for Week 32 of 2011:

Week Ending: 12^th August 2011 (Week 32, Report No: 32/11)

Demolition Market:

Bangladesh

The Bangladesh’s Supreme Court upheld the decision of the High Court, after an appeal by green campaigners to overturn the decision, granting Chittagong shipbreakers an extension to continue importing ships for scrapping till early October. The ruling gives Bangladeshi breakers additional time to implement tougher and environmental safety rules.

India

After witnessing high rocketing scrap rates offered by

India

last week, it remains to be seen if this high momentum will persist as many end buyers seem to wait and watch the direction of the market before committing to new high priced units. India remains on the frontline in terms of scrap prices offered and volume of transactions, while levels in China have shown some improvement, especially in the wet market, to bridge the gap with the

India

subcontinent region.

Pakistan

Business is still slow, but there are expectations for more aggressive buying as the month of Ramadan approaches.

Overall Scenario:

The week ended with 11 vessels reported to have been headed to the scrap yards of total deadweight 672,538 tons.
In terms of the reported number of transactions, the demolition activity has been marked with almost no change from previous week’s activity, while there has been a 6.44% decrease of the total deadweight sent for scrap.
This week although a similar amount of tankers and bulkcarriers have been headed to the scrapyards, the difference in deadweight stands at 224.395 tons since larger size tanker units have been reported.
In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker carrier sector by India for an aframax unit of 95,029 dwt “SCOTIA SPIRIT” of 16,8450 LDT at $540/ldt.
India has attracted 54.5% of the total demolition activity offering $520/ldt for dry/general cargo and $545/ldt for wet cargo, a small revise downwards for the high levels of the previous week.
At a similar week in 2010, demolition activity was standing at same levels, in terms of the reported number of transactions, 11 vessels had been reported for scrap of total deadweight 628,101 tons with only 3 bulk carriers scrapped and tankers holding 73% of the total activity.
Pakistan was active by offering the best levels among rivals, $400/ldt for dry/general cargo and $445/ldt for wet cargo.