09 April 2014

GMS weekly report on China ship breaking industry for WEEK 14 of 2014:

With numbers stranded in and around the USD 300/LT LDT (below on smaller dry vessels and about USD 10 to USD 20 per LT LDT higher for decent sized containers and tankers), there was little tempting international owners to dispose of their older tonnage in China.

Indeed, for many owners with final discharge ports in the Far East, a ballast voyage over to the Indian sub continent has been making much greater sense financially for some time now and all the better if a final cargo in that general direction can be found.

Even non state owners with non-Chinese flagged vessels are looking at bringing their smaller LDT tonnage across to the Indian sub continent, something that up until the announcement of the state subsidies late last year would have been almost unthinkable.

Correction:

In last week’s edition, we had compared the price gap between China and Indian subcontinent markets stating The price gap remains about USD 150 per LT LDT between both markets which is the amount state owners are receiving as a premium on their Chinese flagged tonnage scrapped locally.“

The statement should have the read “The price gap remains about USD 150 per tonne between both markets which is the amount state owners are receiving as a premium on their Chinese flagged tonnage scrapped locally, albeit on a Gross Ton basis”. We regret any inconvenience this may have caused.

Source: steel guru. 8 April 2014

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