1.3.2 Capacity of Ship Scrapping in Principal Countries
Table.1.3.2 shows that Taiwan and Korea had already withdrawn from the ship breaking business since 1997. China made a stoppage since 1997 because of a high price of scrapping vessels, a ban on usage of re-rolled bar for construction market, the introduction of import duty (3 to 6%) and the added value tax. However, as China has still a capacity of ship breaking of 6 million GT per year. China may restart the ship scrapping in case the price of scrapping ship would fall down to 120 to 100$/LDT.
India would have a largest scrapping capacity in the world when the construction of new ship breaking dock at Alan bay which is financed by Yen loan and to be completed in 2000. However, in recent years, the feasibility of scrapping in India is falling down because of:
a) High import duty for scrapping ship in order to protect the steel products from the electricity furnace,
b) Strengthening of gas free regulation after an outbreak of gas explosion,
c) Raise of scrapping cost
d) Fall in price of re-rolling round bar due to a low demand caused by domestic economic fall.
Bangladesh scrapped constantly about 2 million GT a year but its capacity is limited because of long rainy season. Pakistan has also the large capacity of scrapping but its capacity would not be increased because the government impose a heavy import duty for scrapping ship of 100$/LDT.
Fig.1.3.1 shows the trend of scrapped volume and the scrapping capacity in principal countries based on Tab.1.3.2. It shows that the capacity in the world reached to approximately 25 million GT in 1985 and falling down quickly 18.5 million GT in around 1997 because of withdraw from ship breaking by Taiwan and Korea.
