03 October 2011

Golden Destiny SA Weekly Demolition Report for WEEK 39 of 2011:

Week Ending: 30 September 2011 (Week 39, Report No: 39/11)

In the demolition market, the momentum remains positive towards more scrapping activity till the end of the year with scrap prices being still at firm levels, whereas some signs of downward revision have been witnessed during the last days.

India is now paying $505/ldt for dry and $525/ldt for wet cargo.

Bangladesh ship recycling industry is in uncertainty with deadline extension approaching to an end on October 12th. Despite there is some optimism from Bangladesh that yards will remain open after the end of the extension, a recent death at a domestic scrap yard threatens the future of the industry.

In the Indian subcontinent region, the price gap between Pakistan and India has now narrowed and Gadani scrap buyers seem to be more aggressive to pick up new scrapping tonnage.

In China, even though a dropdown has been noticed this week in the scrap prices offered for the dry cargo, down by $15/ldt, there are some owners that managed to conclude deals at levels xs $450/ldt.

The week ended with 18 vessels reported to have been headed to the scrap yards of total deadweight 1,077,730 tons.

In terms of the reported number of transactions, the demolition activity is down by just 5% from last week’s levels, while there has been a 35.8% decrease in terms of the total deadweight sent for scrap.

At a similar week in 2010, demolition activity was standing at 72.2% lower levels than current week levels, in terms of the reported number of transactions, when 5 vessels had been reported for scrap of total deadweight 115,620 tons with 2 tanker units and 1 bulk carrier heading to the scrap yards. India and Pakistan were offering $410 -$435/ldt for dry/general cargo and $440-$465/ldt for wet cargo, while Bangladesh market was inactive.

Source: Hellenic Shipping News (Sourced from GDSA
www.goldendestiny.gr). 30 September 2011

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