China ship recycling industry boom looks set to continue for 2-3 years

The boom in China's ship recycling industry is likely to continue into the next two to three years, Yan Heming, president of China National Shiprecycling Association (CNSA) told media. China's ship recycling industry has been warming up since 2009, with more domestic shipbuilders jumping into the ship recycling business.
Statistics from the CNSA show some 3.23 tonnes of light ships, or 440 units of waste and old ships, were recycled in China, up four times and 1.5 times respectively from 2008.
This signals the start of a new boom period in the ship recycling industry, said Yan.
The boom came as a result of rising stockpiles of waste ships accumulated before the financial crisis and the need to recycle the old ships amid a gloomy shipping market in the aftermath of the financial crisis. The strong demand for scrap steel in China and other emerging markets also played a role in boosting the ship recycling industry.
As the world steps up to phase out single-hull oil tankers in 2010, the ship recycling industry worldwide will get a huge boost this year, Yan said.
Clarkson, the world's leading provider of integrated shipping services, estimated that the global ship recycling industry will double the growth in 2010 and a total of 60 million DWT of ships will be recycled over the year.
The boom came as a result of rising stockpiles of waste ships accumulated before the financial crisis and the need to recycle the old ships amid a gloomy shipping market in the aftermath of the financial crisis. The strong demand for scrap steel in China and other emerging markets also played a role in boosting the ship recycling industry.
As the world steps up to phase out single-hull oil tankers in 2010, the ship recycling industry worldwide will get a huge boost this year, Yan said.
Clarkson, the world's leading provider of integrated shipping services, estimated that the global ship recycling industry will double the growth in 2010 and a total of 60 million DWT of ships will be recycled over the year.