04 October 2011

GMS weekly report on CHINA shipbreaking industry for WEEK 39 for 2011:

Arresting the slide!?

There was little that could be done to avert the alarming slides witnessed in the Chinese market from last week. Indeed, those falls continued into this week with a further USD 15/LT LDT dropping off the price to leave the market at a new low for the year.

With dry vessels selling in and around the low 400s/LT LDT and wet vessels some USD 10-15/Ton above that, local buyers may have a tough task persuading Sellers with units positioned in the area to head for Chinese yards. Yet with a scarcity of tonnage currently in yards, the expectation is that in order to secure market tonnage, prices will have to increase once again just to stay in the hunt.

For the time being, no yards seem prepared to offer on vessels, content to sit tilings out for the time being. One bulker that had been committed to North China last week at 450/LT LDT was once again on the market after the deal failed with no end buyer willing to take a chance on a Fujian owned unit at prices now below USD 430/LT LDT.

NO Market Sales Reported.

Source: Steel Guru (Sourced from GMS Weekly). 04 October 2011

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