Ship Scrapping Takes a Leap in First Half of 2021

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Mfame Editor
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  • ship scrapping takes a leap in the first half of 2021
  • if steel demand continues to rally the demolition scrap price for shipping, then it is likely that scrapping numbers will increase

The analysis, posted online by Guy Cooper of VesselsValue, cites “extreme scrap prices” as contributing to the high dismantling rate, with ferrous scrap trading toward the high end of its historic range throughout 2021 says an article on Recycling Today.

Ship scrapping takes a leap 

Despite an international trading community clamoring for more shipping options, the first half of 2021 saw 275 cargo vessels sold for scrap. That figure is up by 40 percent compared with the first six months of last year and by 33 percent compared with 2019, according to an analysis by the United Kingdom-based VesselsValue Ltd.

High scrap prices

Guy Cooper also points to new emissions-related environmental regulations that have caused owners of aging vessels to conclude that (along with high scrap prices) the time was right to retire portions of their fleets. He calls it “the perfect blend to see scrapping numbers blown out of the water and some impressive records to be set”.

Scrapping to increase further

“If steel demand continues to rally the demolition scrap price for shipping, then it is likely that scrapping numbers will increase throughout the year, especially if bulker and container rates begin to soften,” writes Cooper. High steel pricing, he comments, “encourages scrapping but [is] bad for undersupplied sectors as it heightens new [ship]building prices.”

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Source: Recycling Today