Checkmate Ship Breaking In China

THE BAN ON IMPORTS OF SOLID WASTE FROM CHINA IS A CHECKMATE FOR THE SHIPBREAKING SECTOR.

The Ministry of Environment of China published the list of the 16 types of solid waste whose entry will be prohibited to the country as of December 31 of this year. Among these residues are ships to be scrapped, compressed car scrap, electric cables or hardware devices, etc.

China, after India, was traditionally the largest recipient of scrapping vessels and has been losing market share in recent years. At the end of April of this year, China has only scrapped 200,000 tpm, 91% less than during the same period last year, according to Clarkson’s.

Chinese scrap yards cannot compete with their Asian counterparts. From the end of 2013 until the end of 2017, Beijing offered aid to Chinese shipowners of 1,500 yen per gt to scrap their vessels under the Chinese flag. Then, shipowners sent their ships to scrap despite the fact that prices were low because the aid they received exceeded the value obtained from the sale.

The price of recycling clean and dirty tankers was $ 52.5 / tpr well below the rates at the end of September 2013 than the subcontinent, while the scrapping rate for bulk carriers was $ 41.25 / tpr .

As of April 30, 2018, the gap has opened to $ 209.5 / tpr for dirty oil tankers, to $ 214 / tpr for clean tankers and $ 218 / tpr for bulk carriers.

Finally comment that Pakistan at the end of April returned to allow the scrapping of tankers, after 18 months without admitting this type of ships as a result of the tragic accidents that occurred. Of course, the vessels must be completely inert and without waste on board as mud and empty spill tanks, for example.

Scrapped tonnage according to the country. Figures in Mtpm. 2018 *: until April

CHECKMATE SHIPBREAKING IN CHINA

As can be seen in the summary table, a total of 12.7 Mtpm (+ 11%) has been scrapped to date.

The NGO Shipbreaking Platform recently published data for the first quarter of 2018, in which a total of 206 ships were scrapped, of which 152 went to Asia.

 

 

Source: Sector Maritimo