Depressed steel prices in China saw little activity on the sale and purchase front for another week as most vessels are now heading over to Indian sub-continent range or even entertaining offers from local Vietnamese / Indonesian scrap yards (so poor are Chinese levels currently).
However, two surprising deals were done into North China (after owners had seen previous deals fail at levels well into the 300s/LT LDT). The smaller general cargo vessels WIN (2,522 LDT) and LARSEN (3,011 LDT) were concluded for USD 300/LT LDT (despite numbers for these types of vessels being below around mid to high 200s/LT LDT currently).
It could therefore be a quiet summer on the ship recycling front in China unless steel prices can show some buoyancy in the coming months - at the moment there is very little incentive for buyers to purchase vessels as scrap steel is stockpiling in yards and rates remain dire on the resale.
Source: steel guru. 11 June 2013http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_23/314929.html