Wirana Markets: China

• With effect from 1st January 2019, foreign flagged ships are not allowed to be recycled in China.
• For information, while China was accepting foreign flagged vessels, basic information was as follows:
  • Chinese recyclers use pier-side or dry dock facilities to conduct the recycling operations
  • China has 80-90 yards performing ship recycling.
  • China’s shipping yards are well equipped to perform green recycling.
  • The capacity in China is very elastic as a lot of repair yards can double as recycling yards, though they may not have the experience and the know-how. The sellers, however, need to be aware of draft restrictions that may affect the delivery of the ship.
  • Chinese yards traditionally pay a lot lesser than the Indian sub-continent and Aliaga.

When a ship reaches the end of its working life, ship recycling companies performs ship demolition of it, but these companies follows the green ship recycling rules and protocols to save the environment. The scrap price for vessels fluctuates time to time and it merely depends upon the supply and demand chain. In India & Bangladesh, most vessels are still breaking on the beach, causing severe pollution and safety issues for humans and water bodies. The ship demolition market in China has gone from strength to strength. Even when there was a financial crisis in 2008, ship demolition / ship recycling in China was growing strongly.