06 August 2013

GMS weekly report on Chinese ship breaking industry for WEEK 31 0f 2013:

As newer vessels in the Far East become available for demolition, they stand to be greeted by a Chinese market where renewed optimism, improving demand, and finning prices have been witnessed over the last few weeks.

Few market deals came to light this week but Chinese controlled and flagged units (thus eligible for tax breaks / incentives) were, more often than not, concluded directly between owners and local recycling yards.

As such, now may be the ideal opportunity for Chinese yards to try and acquire vessels (with the pricing now only about 50 USD/LT LDT off of the sub-continent markets) and the end of Eid / fourth quarter likely to bring the traditional spike in prices.

Source: Steel Guru. 6 August 2013
http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_31/321253.html

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