20 September 2011

Intermodal Weekly Demolition Market Report for WEEK 37 of 2011:

Broker’s Insight:

Demolition (Wet: Firmer+ / Dry: Firmer+)

Things continue to hold firm with regard to prices in the demolition market despite the still large number of demo candidates. Demand for steel remains strong in the whole of the Indian Sub-continent as well as in China, thus providing a stable ground from which breakers can up their offered price levels. Howeverthere is still a lot of uncertainty in the market and as long as the supplies of scrap candidates remain strong there is always the possibility of a drop in the market.

At the same time we reach ever closer to the upcoming review of the extension granted by the High court to Bangladesh shipbreakers. This adds a further uncertainty to all demo buyers which could possibly be reflected later on in offered prices.

Demo prices increased further this week with Wet tonnages now reaching levels of around 465 - 540$/ldtwhile dry tonnages are going for about 455 - 515$/ldt.

Most notable this wee was the price paid by Indian breakers for the general cargo ship ‘Tarpon Clipper’ (23,220dwt – 8,010ldt-blt 79) which reportedly went for a very firm price of $ 548/Ldt.

Source: Hellenic Shipping News (Sourced from Intermodal Shipbrokers Co, www.intermodal.gr). 20 September 2011

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