16 October 2013

GMS weekly report on Chinese ship breaking industry for WEEK 41 of 2013:

China emerged from the October holidays on a sorter note with demand having diminished and prices having weakened by at least USD I0/LT LDT. This is largely down to an equivalent fall in local scrap steel prices.

Of encouraging news however is that the demand for iron ore amidst an increase on Chinese building projects has pushed on charter rates (particularly in the cape sector), and has slowed the supply of candidates to the market. A similar rebound on steel prices could be expected if this recent turnaround in the trading sector persists.

One older sale from before the holidays saw the Ukrainian owned capesize bulker ELOUNDA BAY (22,494 LDT) sold for USD 377/LT LDT. Owners Vista had only recently purchased the vessel from Zodiac (ex BUCCLEUCH) several months before, but having seemingly found no employment, took the decision to scrap her not long thereafter.

Source: GMS Weekly. 15 October 2013

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