22 August 2014

GMS weekly report on China ship breaking industry for WEEK 33 of 2014:

It has become a given that activity in the Chinese market remained at a minimum for another week, with levels stranded acres from reality. This lack of competitive pricing has cost yards their share of the international market tonnage for most of this year.

The state subsidies have however seen a raft of well priced government tonnage head to recycling yards along with the occasional green vessel. However, to lose vessels to local Indonesian, Vietnamese and even Philippine scrap yards should remain a source of discomfiture to Chinese buyers, given the relatively meager sophistication and experience of such competing facilities.

Source: steel guru. 19 Aug 2014

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