The Chinese market continued its sustained decline with another week of inactivity and dire levels. Having been completely uncompetitive with Indian sub-continent markets of late, very few vessels have made their way to Chinese yards over the past few months.
Indeed, many vessels positioned in the Far East have even found Vietnamese and Indonesian scrap yards more competitive on the price despite the relatively untried and untested route of selling to those yards.
With a dearth of sales of late therefore, there is a growing hunger and demand in Chinese yards. However, local fundamentals (in particular the struggling price of scrap steel) has not allowed Chinese buyers to increase their prices at all.
Source: steelguru. 3 July 2013