DEMOLITION QUICK UPDATE

Week 23 2015 (1st – 5th June)

Last week the demolition market showed no sign of positive momentum and the activity remained at subdued levels. The budgetary announcements in both Bangladesh and Pakistan that had put both markets on a ‘wait and see’ mode for the past few weeks were finally announced, and while it initially appears that Bangladeshi breakers can expect minimal changes, the same cannot be said for the Pakistani market whose participants are faced with increased levies on imported tonnage. In India there were no significant changes noted, as despite a slight recovery of the Indian Rupee against the USD, the arrival of the monsoon period contributed to the low sentiment observed. Traditionally, the summer months signal the beginning of a quieter period for breakers in the sub-continent and this year is not expected to be any different. In the Far-East Chinese breakers remained busy with the state owned Chinese flagged vessels and showed no appetite to compete despite the availability of tonnage and low levels on offer in the subcontinent.

                    Indicative Demolition Prices

                              Gen Cargo             Tanker

India                USD 365 /lt Ldt     USD 385 /lt Ldt

Bangladesh  USD 360 /lt Ldt     USD 380 /lt Ldt

Pakistan         USD 350 /lt Ldt    USD 380/lt Ldt

China              USD 200 /lt Ldt    USD 215 /lt Ldt

Turkey            USD 240/lt Ldt     USD 255 /lt Ldt