Post Chinese holidays has seen little change to the status quo, with levels still stranded in the low USD 200s/LDT and occasionally even dipping below USD 200/LDT for some smaller LDT tonnage. As such, most players in the industry have been focusing on the subcontinent markets that are presently paying well over double of what Chinese recyclers are currently offering.
As previously reported, President Xi has been voted in to the Premiership for life and it remains to be seen just how China will respond to President Trump’s aggressive 20% tariffs on steel and aluminum imports into the United States, in addition to the reported USD 60 billion in tariffs on China specific imports.
Whether this will eventually end up in a trade war remains to be seen, but if so, will certainly have catastrophic consequences for this and many other industries alike. For now, China has responded sternly to the news stating that the Chinese government will take necessary precautions in order to protect their trade interests.
The state scrap / newbuilding subsidies have also to be renewed this year failing which, could result in a steady stream of government controlled Chinese flagged tonnage eventually heading towards the subcontinent for recycling.
Source: steel guru. 28 March 2018