With numbers stranded in
and around the USD 300/LT LDT (below on smaller dry vessels and about USD 10 to
USD 20 per LT LDT higher for decent sized containers and tankers), there was
little tempting international owners to dispose of their older tonnage in China.
Indeed, for many owners
with final discharge ports in the Far East, a ballast voyage over to the Indian
sub continent has been making much greater sense financially for some time now
and all the better if a final cargo in that general direction can be found.
Even non state owners
with non-Chinese flagged vessels are looking at bringing their smaller LDT
tonnage across to the Indian sub continent, something that up until the
announcement of the state subsidies late last year would have been almost unthinkable.
Correction:
In last week’s edition,
we had compared the price gap between China and Indian subcontinent markets
stating The price gap remains about USD 150 per LT LDT between both markets
which is the amount state owners are receiving as a premium on their Chinese
flagged tonnage scrapped locally.“
The statement should
have the read “The price gap remains about USD 150 per tonne between both
markets which is the amount state owners are receiving as a premium on their
Chinese flagged tonnage scrapped locally, albeit on a Gross Ton basis”. We
regret any inconvenience this may have caused.
Source: steel guru. 8
April 2014
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