27 March 2014

GMS weekly report on China ship breaking industry for WEEK 12 of 2014:

Sales between state owners and local yards continued to rack up with news of a 19,000 LDT TBN Cosco container having been sold for region USD 326 per LT LDT into South China.

Even though the gap between Indian sub continent prices and China stands around the USD 150 per LT LDT mark other south Asian recycling facilities in Vietnam and Indonesia (capable of only really taking smaller vessels) would also be competitive with China levels today.

Other Chinese private owners are also looking at actively reflagging their vessels even though the process is cumbersome in order to qualify for the state subsidies on scrap vessels and corresponding new-buildings.

Source: steel guru. 25 March 2014

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