18 June 2014

GMS weekly report on China ship breaking industry for WEEK 24 of 2014:

As the sub continent markets cooled, Chinese buyers began to acquire one or two more units despite the continually weak market and prevailing levels for all types of vessels still in the low USD 300s per LT LDT.

The gap between a sub-continent and a China delivery still stands at USD 150 per LT LDT, but local demo yards have remained active thanks to the government subsidies that have seen a whole host of vessels of all sizes and types (from state run owners) fill local yards.

Other South East Asian scrap yards in Vietnam, Indonesia, and even the Philippines have also been active in diverting international (non Chinese flagged) tonnage away from Chinese yards at similar levels if owners choose to ignore the higher numbers in the sub continent, even for smaller general cargo units.

Source: steel guru. 17 June 2014

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