18 October 2011

GDSA Weekly Demolition Market Analysis For WEEK 41 of 2011:

Week Ending: 14th October 2011 (Week 41, Report No: 41/11)

The week ended with the highest level of activity being recorded in the secondhand market, lower levels of newbuilding activity and firmer volume of demolition transactions.

Overall, the secondhand ship purchasing activity is up by 113% in comparison with the ordering momentum, while the demolition activity is 12.5% down from the total number of orders reported and down by 58.8% from the secondhand ship purchasing activity.

The week closed with 48 transactions reported worldwide in the secondhand and demolition market, up by 17% from previous week and up by 26.3% from a similar week in 2010, when 38 transactions had been reported and secondhand ship purchasing activity was 82% higher than the ordering business.

Demolition Market:

In the demolition market, a firmer volume of scrapping activity came to light from last weeks’ weak levels.

The downward revision of scrap prices for the dry/general cargo continues for a second consecutive week with India and Bangladesh paying $495/ldt, China $430/ldt and Pakistan being one breath from the Indian subcontinent region by offering $490/ldt.

Some deals have been emerged the last days in the Bangladesh market, but there is still no official extension of the last market’s deadline on October 12th.

In the meantime, Bangladesh has announced its plans for the creation of a “Ship Building / Ship Recycling Board” service under the Ministry of Industries that will be responsible for monitoring the import of ships of recycling in Bangladesh.

In the wet market, scrap levels keep their pace with India and Bangladesh paying $525/ldt. Pakistan seems to have regained its power by picking up again wet units, while in China business has slowed down due to the National October holidays underway.


The week ended with 14 vessels reported to have been headed to the scrap yards of total deadweight 874,228 tons.

In terms of the reported number of transactions, the demolition activity has been marked with a 40% week-on-week increase and regarding the total deadweight sent for scrap there has been a 190% increase.

In terms of scrap rates, the highest scrap rate has been achieved this week in the tanker sector by Pakistan for a tanker of 91,717 dwt “NOSTOS” with 13,592/ldt at $540/ldt, while in the dry sector India has paid $540/ldt for a container of 40,379 dwt “MSC AURELIE”.


India and Pakistan have attracted 57% of the total demolition activity.

At a similar week in 2010, demolition activity was down by 50% from the current levels, in terms of the reported number of transactions, 7 vessels had been reported for scrap of total deadweight 36,623 tons with no scrapping activity in the bulk carrier and tanker segment, with India and Pakistan offering $435-410/ldt for dry and $465-%440/ldt for wet cargo.

Source: Hellenic Shipping News (Sourced from Golden Destiny SA)

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