SHIP RECYCLING REPORT - Windows

Saturday 14th September 2013

SHIP RECYCLING REPORT

WEEK 37 (2013)

India

The Indian currency is seemingly stabilizing at levels of INR 64 to 1 USD. Indian Ship breakers are yet not
very keen on buying new tonnage, but will have to beach something to keep the ball rolling. Breakers have
been quiet for over 2 months now with lot of them electing not to undertake any new risks. This sentiment
might change with the steady rupee.
Jumping the gun, many cashbuyers have started lapping up tonnage without thinking twice on the price; this
again is testament to the immature nature of this market. The final destiny of these demo sales are unknown,
as they are based on speculative prices and unknown demand from the end buyers. Unfortunately, today the
local market have softened by another 1000 Rs/ton (rolling plate/melting scrap). All indications suggest
demo markets aren’t sailing smooth and will take some more fundamentals to strengthen before one can put
a finger on a number.
Recent fixtures will be a good test to see if breakers are really ready to gamble again. Early indications show
that might not be the case and might see these tonnages enter back into the market.
Yet again, it is imperative to select the right buyer/cash buyer for tonnages circulated by recycling. Being
surefooted can take an owner in the right direction at the right price, rather than tap-dancing to the beach.

Pakistan

Market in Pakistan is same as last week. Breakers here are surprised by the sudden speculative spike in
Indian markets, but do not want to join this upswing as it cannot justify their local steel prices.

China

China continues to buy ships. Owners have been keen to deliver ship to Chinese yards with no hesitation on
the current pricing. Almost all yards in china are offering the same price in line with the market.
Another possible destination has opened for ship-recycling north of the shanghai region. Dalian Ship-
recycling yard crossed a milestone recently by buying its first foreign flag vessel for demoltion. The yard
has capacity to beach as much as 30 large ships a year, but will begin proceedings steadily.
Cape and VLCC sold north china for USD 385 levels. Ship breakers have also privately accumulated approx
200,000 ldt from local owners buying their Chinese flag ships.

Bangladesh

Unlike India , there is no shortage of tonnage. Many ships waiting at anchorage waiting for end buyer and
many owners keen to sell their tonnage Bangladesh due to geographical positioning of the ship, despite it
being an unreliable and underperforming market.

This oversupply has not given rise in prices for this region and thus proving that the speculative spike in
Indian market is merely due to shortage of the ships available for delivery India.

INDIA
BULKERS – 360 USD / L.T
CONTAINERS – 380 USD / L.T
TANKERS - 370 USD / L.T (CLEAN)

BANGLADESH
BULKERS - 340 USD / L.T
CONTAINERS –360 USD / L.T
TANKERS – 360 USD / L.T

PAKISTAN
BULKERS - 360 USD / L.T
CONTAINERS - N/A* USD / L.T
TANKERS - 380 USD / L.T

CHINA
BULKERS – 360 USD / L.T
CONTAINERS – 360 USD / L.T
TANKERS – 360 USD / L.T

* Container vessels are usually not accommodated at Pakistan due to draft issues