A decline in scrap steel prices this week affected levels by as much as USD 10 to USD 15 per LT LDT in China. However, this was largely inconsequential as Chinese chop shops are still unable to compete with sub continent markets, let alone other South East scrap yards in Vietnam and Indonesia.
As a result, it was no surprise to see an empty sales board for yet another week the only sales that could possibly register would be strictly green vessels positioned in the area now.
Overall, prospects for the local market are not looking much rosier as the summer months progress and it could be a bleak period of time ahead for the Chinese market in terms of sentiment and sales.
Source: steel guru. 15 July 2014