16 July 2013

GMS weekly report on Chinese ship breaking industry for WEEK 28 of 2013:

Finally some improvements were seen this week in the China market as prices jumped by some USD 10-I5/LT LDT off the back of firming scrap steel prices. With the Indian sub-continent market so weak presently, this has put Chinese buyers only some USD 60 to USD 70/LT LDT behind their competitors rather than the distant USD 100/LT LDT of recent times.

Ship owners with vessels positioned in the Far East therefore have an increasingly difficult decision when positioning for the final voyage. If the sub-continent markets continue to slip as they have been, then we may well see a China resurgence on the cards.

Given the lack of buying activity over the past few months, most yards are empty and hungry for tonnage, so when die right vessels become available, some aggressive bidding is likely to be seen.

Source: steel guru. 16 July 2013

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