Having concluded a number of capesize and panamax bulkers eligible for the subsidies, at decent prices from state owners since the end of Chinese New Year, Chinese scrap yards look set to be busy for the remainder of the year.
The subsidy runs until the end of 2015 after which, a more competitive international ship recycling industry is set to jump back into the frame.
Despite economic concerns, the government has been making encouraging noises during the communist party conference over the past few weeks, about growth and stimulus packages (if required) to keep China on track as the world’s second largest economy.
Source: steel guru. 18 Mar 2015