24 April 2012

GMS weekly report on CHINESE shipbreaking industry for WEEK 16 of 2012:

After a hugely busy and impressive last few weeks, the wheels finally came off the Chinese market as sliding steel prices saw prevailing levels for ships tumble.

Several capesize bulkers (including the Japanese owned IRIS FRONTIER - 20,784 LDT), and a large container (YM EUROPE - 18,628 LDT) went for prices in the mid 400s/LT LDT last week as open buyers set about filling their plots.

However, this week saw a complete turnaround in fortunes with prices lower by about USD 20/LT LDT at least. Many buyers have already stocked their yards with tonnage, and the correction in steel prices has left those few buyers that are open to buy, reluctant to commit on new units until a settling of levels comes forth.

The one deal that was concluded was the smaller container X-PRESS TOWER (4,830 LDT) from Korean owners - vet that deal was supposedly facing problems due to some outstanding claims that need to be settled.

Source: Steel Guru (Sourced from GMS Weekly). 24 April 2012
http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_16/260500.html

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