Chinese prices failed to improve for another week as fears of an overall depreciation in the national economy took hold. A slowdown in Chinese exports to the West and the US along with an incapacity for local demand to offset that slowdown has raised fears for Chinese growth in the short term at least.
The trickle-down effect has seen local yards stockpiling steel (as with a healthy number of yards in India) and not offloading at the previous rate of knots. With many yards also at capacity, it may be a while then before we see a return to the aggressive sort of buying seen in the first quarter of the year.
Depressed steel prices and the state of competing Indian sub-continent ship recycling markets has hardly helped in pushing prices on to the extent that so many have been hoping for.
Source: Steel Guru (Sourced from GMS Weekly). 12 June 2012http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_22/268204.html