Desperately low steel prices saw quotes for scrap ships sink even further in China, in what remained another hopeless week. Prices are firmly entrenched in the mid to high USD 200s per LT LDT as the price differential for vessels widens to USD 200 per LT LDT with the sub continent markets.
Logically, as long as the state supply of tonnage eligible for the government subsidies continues, these low prices will not be of any worry to Chinese recyclers.
However, a complete absence of international tonnage heading to Chinese yards is a worry to the recycling industry at large, in what has been an extremely bleak year so far for the Chinese market.
Source: steel guru. 2 September 2014