10 December 2013

GMS weekly report on China ship breaking industry for WEEK 49 of 2013:

Despite year end approaching and Chinese holidays in sight, there was no pick up of activity in the Chinese ship recycling market. Traditionally the months of December and January have seen prices improve as yards seek to fill quotas before renewing licenses.

Steel prices have however been deliberately pegged back by a government seeking to cool the Chinese economy, after fears it had been growing / overheating too fast.

There is also the suspicion that even if prices did start to improve from the current realities in the low USD 300s/LT LDT, there would still be no competing with a rampant Indian sub-continent market, for the time-being.

Source: steel guru. 10 December 2013

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