As the Chinese recycling markets continued to struggle post October holidays, there was very little by way of new sales to report. Indeed, it is making more sense for cash buyers to pick up tonnage, 'as is where is' in the area and perform a voyage to the sub¬continent - such is the difference in prices at the moment (at least USD 60 or even USD 70 /LT LDT).
Smaller sized vessels may even head to local Indonesian or Vietnamese scrap yards if better positioned. If this trend continues, it mav be some time before Chinese buyers see their share of market vessels again.
With chartering rates having picked up and an increase in building projects in China set to stimulate steel prices once again, there was optimism of a return to form, perhaps even within this vear.
Source: Steel Guru. 22 October 2013http://www.steelguru.com/international_news/GMS_weekly_report_on_China_ship_breaking_industry_for_WEEK_42/327124.html