23 September 2011

Golden Destiny SA Weekly Demolition Report for WEEK 38 of 2011:

Week Ending: 23rd September 2011 (Week 38, Report No: 38/11)

In the demolition market, the scrapping momentum insists at solid levels driven this week firm activity in the tanker and liner segment and fairly active levels for bulk carrier vessels. 4 VLCC units were finally headed to the scrap yards and there are hopes for firmer volume of transactions in the crude carriers segment as a remedy to oversupply growth. India is still the dominant force of the Indian subcontinent region with uncertainty surrounded the Bangladesh market for the granting of new extension.

Scrap prices keep their high momentum with India paying $515/ldt for dry/general cargo and $540/ldt for wet cargo, while Pakistan seems to have won some tanker scrapping activity this week. China expects more units to be sent for disposal in their yards on the occasion Bangladesh will not be certified with one more extension on early October.

The week ended with 19 vessels reported to have been headed to the scrap yards of total deadweight 1,679,039 tons. In terms of the reported number of transactions, the demolition activity is down by 17.3% from last week’s levels, while there has been a 58% increase in terms of the total deadweight sent for scrap due to the strong number of VLCC disposals. 

In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker segment for an aframax unit of 98,624 dwt vessel built 1990 with a lightweight of region 16,125tons that has been sent for beaching in Pakistan at $546/ldt. 

In terms of volume of transactions, tankers won the leading position that bulk carriers have kept for many weeks now by holding 42.1% of this week’s scrapping activity. India has won 36.8% of the scrapping business.

At a similar week in 2010, demolition activity was standing at 63% lower levels, in terms of the reported number of transactions, when 7 vessels had been reported for scrap of total deadweight 218,513 tons with tankers holding 57% of the total volume of activity.

India and Pakistan were offering $400 -$425/ldt for dry/general cargo and $440-$455/ldt for wet cargo, while Bangladesh market was inactive.

Source: Hellenic Shipping News (Sourced from GDSA www.goldendestiny.gr). 23 September 2011

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