25 December 2017

GMS update on Shipbreaking in China in Week 49 - STILL OUT!

Despite the odd blip in the sub-continent markets (as evidenced from Pakistan this week) and a comparatively uncompetitive Bangladeshi market, the Chinese market remained marooned USD 100s/LDT away from their sub-continent counterparts (about half the value at present).

With the Chinese subsidies also set to end next year and many yards unsure over just how soon they will manage to renew their operating licenses once again, the inflow of recycling tonnage is set to crawl its way into 2018.

At present, there are only 1 or 2 prominent Chinese ship-recycling yards that are operating and importing vessels, something that has provided them the liberty to offer prices far below even those from Turkey. As such, the short-term prospects for the Chinese ship recycling industry appear incredibly bleak (at best).

Source: steel guru. 13 Dec 2017

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