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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