ShipRecycling:: GDSA Weekly Demolition Market Analysis for Week 30 of 2011:

29 July 2011

GDSA Weekly Demolition Market Analysis for Week 30 of 2011:

Week Ending: 29^th July 2011 (Week 30, Report No: 30/11)

Demolition Market:

In the demolition market, the situation for the reopening of the Bangladesh remains pending, while in India prices are going high, surpassing the barrier of $500/ldt, due to mainly firm steel prices Despite the announcement that the

Bangladesh

market has been granted an extension till October, the Bangladesh Environmental Lawyers Association (BELA) made an appeal to the extension and the decision was reviewed again by the Supreme Court with the market remaining shutdown.

Pakistan

and China have been left behind with expectations for a hard competition between India and

Bangladesh

. The news from the Bangladesh market buoyed the sentiment in

India

with some units fetching levels well in excess of $500/ldt including a large amount of bunkers remaining on board.

Pakistan

won one bulker in its scrap yards with China witnessing more activity in its scrap yards at levels of excess $450/ldt.

The week ended with 12 vessels reported to have been headed to the scrap yards of total deadweight 557,302 tons.

In terms of the reported number of transactions, the demolition activity has been marked with a 50% week-on-week decline and regarding the total deadweight sent for scrap there has been a 21% drop.

Bulk carriers continue to dominate the demolition scene grasping 67% of this week’s total demolition activity.

In terms of scrap rates, the highest scrap rate has been achieved this week in the bulk carrier sector by India for a panamax unit of 64,780dwt “HANDY V” OF 11,349 LDT at $530/ldt incl 700 tons of IFO remaining on board.

India

has attracted 50% of the total demolition activity offering $515/ldt for dry/general cargo and $540/ldt for wet cargo.

At a similar week in 2010, demolition activity was standing at similar currently levels, in terms of the reported number of transactions, 12 vessels had been reported for scrap of total deadweight 694 mil tons with only two bulk carriers scrapped and India offering the $400/ldt for dry and $440/ldt for wet cargo.