As levels failed to show any signs of picking up in China, several owners (non state and therefore not eligible for the government subsidies) started to consider making the voyage over to Indian sub continent range to scrap their older vessels.
The price difference between both markets remains at a prohibitive USD 150 per LT LDT something that will see Chinese owners struggle to compete on the majority of vessels.
Nevertheless, demo yards will continue to receive well priced tonnage from state owners keen to capitalize on the subsidies that will see them profit by CNY 750 per GRT on demo vessels and CNY 750 per GRT on the corresponding new building.
Source: steel guru. 4 March 2014http://www.steelguru.com/international_news/GMS_weekly_report_on_China_ship_breaking_industry_for_WEEK_09/333929.html