Korea's STX Pan Ocean is raised as the main beneficiary of an increasing ship scrapping.

Yang Hee-jun, researcher of Seoul-based Hyundai Securities, says through a report released today that "As the Bangladesh Government has lifted the ban on ship scrapping with shipbreaking yards resuming their business, STX Pan Ocean will benefit from it." 

"Bangladesh's shipbreakers took on 40% work of world's total scrapping in 2008, and their business normalization will contribute to making a balance of demand and supply of bulkers," he adds.

He also explains, "The increase in the supply of ship-demolition means a bigger number of aged ships can be scrapped in the same time. And an acute competition to secure old ships to be scrapped among Indian and Pakistan ship-breaking yards, etc. will trigger an increase of purchase prices." 

As a result, there will be a considerable number of ships to be demolished, so the depressed bulker market will probably recover soon, according to him.

Source: EST. 09 March 2011

http://www.eshiptrading.com/InfoContent-41808-3.html