Chinese Recycling Rising

2013-11-29

Affected by slow economic recovery, long-protracted depression in shipping market, increasing demolition of old vessels and so on, scrapping tonnage is said to be still staying at a high level this year.

According to China’s tentative statistical figure recording the first ten months of this year, demolished vessels of the members from China National Shiprecycling Association (CNSA) reached 260.

Of which, imported vessels for demolition declined by nearly 20% compared to the corresponding period a year ago in terms of LDT while ships purchased for demolition in China sharply grew by 160% in numerical and LDT terms, which shows that Chinese shipowners and shipping companies have pushed ahead with a fleet renewal this year through sending old vessels to scrapping facilities and so on.

During the same period, 72% of demolished vessels bought by Chinese scrapping firms were bulker (including multi-purpose vessel), which represents a slight decrease from 79% reported last year. In terms of demolished tanker purchase, the amount of Chinese scrapped vessel surpassed the number of overseas ships for demolition.

Meanwhile, amid sharply increasing trading of demolished vessels in this year so far, Chinese ship-recycling industry turned out to have seen no profits yet but instead, their losses get widen as more vessels are sent to scrapping facilities.

The statistic data shows that the total stocks from scrapping activities of CNSA member companies amounted to over 700,000 tons worth CNY 2bn ($328m) in this year to the third quarter, which includes steel plate for ship, iron, nonferrous metal and so on. Many of the stocks are not being traded now due to low scrapping prices. Until the end of this year, stocks of scrapped steel are expected to exceed 500,000 tons.

Source from : asiasis

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