GMS weekly report on Chinese shipbreaking industry for WEEK 9 of 2013:

The volume of vessels recently concluded into China (both market and private) this week finally started to take its toll, with many yards not even speaking on new candidates due to capacity issues.

Those that were willing to open their mouths to offer were doing so at far lower levels as sentiment started to show signs of taking a dramatic dip from (so far) competing Indian sub-continent numbers.

The one bulker concluded saw the PACIFIC BANGHU (5,307 LDT) fetch a strong (on today's market) USD 391/LT LDT into North China.

Source: steelguru. 5 March 2013

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_9/304249.html

GMS weekly report on Chinese shipbreaking industry for WEEK 03 of 2013:

With the Chinese market still in full swing before the onset of the New Year holidays, it was unsurprising to see several more units concluded into China this week. Many vessels have gone direct from Chinese owners into local vards with little more than a casual or cursory check on the sub-continent market (and even then with little serious intent to bring vessels over).

Those units discharging in China or the Far East, are seeing far more bang for their buck on the demo prices at present - something that is seeing the Bangladeshi market in particular, lose out on tonnage.

Whether this trend continues after the Chinese New Year holidays in mid-February remains to be seen, when yards will have to renew licenses at that time and have a whole new quota of vessels to fulfill.

The Japanese owned PCC ASIAN SPIRIT (15,578 LDT) was concluded for USD 410/LT LDT into North China this week for guaranteed green recycling.

Source: Steel Guru. 22 January 2013

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_03/298941.html

GMS weekly report on Chinese shipbreaking industry for WEEK 45 of 2012:

As really the only firm market open to buy at the moment, it was surprising not to see more deals concluded to Chinese buyers this week.

A flurry of activity recently has certainly raised expectations, but there was little to report this week in terms of market sales.

Indeed most owners with vessels in the Far East are now looking at China as the market to go to with sub continent levels softening as they have done. Expect a busy end to the year here.

Source: Steel Guru. 15 November 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_45/291669.html

GMS report on Chinese shipbreaking industry for week 23 of 2012:

Chinese prices failed to improve for another week as fears of an overall depreciation in the national economy took hold. A slowdown in Chinese exports to the West and the US along with an incapacity for local demand to offset that slowdown has raised fears for Chinese growth in the short term at least.

The trickle-down effect has seen local yards stockpiling steel (as with a healthy number of yards in India) and not offloading at the previous rate of knots. With many yards also at capacity, it may be a while then before we see a return to the aggressive sort of buying seen in the first quarter of the year.

Depressed steel prices and the state of competing Indian sub-continent ship recycling markets has hardly helped in pushing prices on to the extent that so many have been hoping for.

Source: Steel Guru (Sourced from GMS Weekly). 12 June 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_22/268204.html

GMS weekly report on Chinese shipbreaking industry for WEEK 21 of 2012:

Rather than using Indian sub continent turmoil as a chance to pick up a few units themselves, China instead relied on their own mini crisis, to make it a miserable past few weeks in international ship recycling quarters.

Not one market sale was registered to local users this week, despite the handvsize bulker ATLANTIC MAJESTY (8,259 LDT) delivering successfully to end buyers at a verv firm USD 415/LT LDT (including 350 T of bunkers upon arrival).

Levels on dry vessels are varying greatly from 360 to 390/LT LDT (depending on specs) and many vessels are not even able to find end buyers with a lot of the yards already packed full of tonnage.

Source: Steel Guru. 29 May 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_21/265971.html

GMS weekly report on CHINESE shipbreaking industry for WEEK 20 of 2012:

After a turbulent last few weeks, there were few signs of any stability returning to the Chinese market. Steel prices have come off significantly leaving prices softer overall by about USD 20-30/LT LDT.

Yet many end buyers were still reluctant to commit on new units (unless at rock bottom prices) with fears of further volatility still very much evident.

To that end there were no market sales to report and very few signs of any deals / sales in the pipeline - despite a vast number of candidates (many of which are positioned in the area) being proposed.

Source: Steel Guru. 22 May 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_20/264920.html

GMS weekly report on Chinese shipbreaking industry for WEEK 19 of 2012:

Prices and sentiment in China remained drastically off for another week as very few buyers were able to offer up numbers due to a shortage of space in yards.

Where available, numbers below 400/LT LDT (often as low as 370-380/LT LDT) were there for dry units with an approx 15-20/LT LDT premium on offer for wet units.

Several older capesize sales emerged - Zodiac's STONEGATE (22,737 LDT) and the Taiwanese owned CAPE WARRIOR (20,538 LDT) for region LISD 420/LT LDT -concluded several weeks ago but only just arriving to one of the larger yards in Xinhui, South China.

Source: Steel Guru (Sourced from GMS Weekly).  15 May 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_19/263830.html

GMS weekly report on Chinese shipbreaking industry for WEEK 18 of 2012:

After weeks of inconsistency, the Chinese market was finally able to draw breath with no market sales to report and many geographically positioned vessels diverted into hungry Bangladesh hands.

The previous few weeks had seen steel prices come off, yet deals were done at lower and lower levels until finally, capacity was breached in many of the major Chinese yards.

One suspects that there may be a far more cautious approach to the buying in the coming weeks, with only bidding ensuing on desired and well-priced units.

Source: Steel Guru (Sourced from GMS Weekly). 7 May 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_18/262686.html

GMS weekly report on CHINESE shipbreaking industry for WEEK 16 of 2012:

After a hugely busy and impressive last few weeks, the wheels finally came off the Chinese market as sliding steel prices saw prevailing levels for ships tumble.

Several capesize bulkers (including the Japanese owned IRIS FRONTIER - 20,784 LDT), and a large container (YM EUROPE - 18,628 LDT) went for prices in the mid 400s/LT LDT last week as open buyers set about filling their plots.

However, this week saw a complete turnaround in fortunes with prices lower by about USD 20/LT LDT at least. Many buyers have already stocked their yards with tonnage, and the correction in steel prices has left those few buyers that are open to buy, reluctant to commit on new units until a settling of levels comes forth.

The one deal that was concluded was the smaller container X-PRESS TOWER (4,830 LDT) from Korean owners - vet that deal was supposedly facing problems due to some outstanding claims that need to be settled.

Source: Steel Guru (Sourced from GMS Weekly). 24 April 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_16/260500.html

GMS weekly report on CHINESE shipbreaking industry for WEEK 11 of 2012:

After a bumper last few weeks, there were some signs this week of a settling down in terms of price and aggression to buy. Just the two market sales were reported Sea Star ship management of China sold off their Panamax bulkers SEA STAR 7 (13,625 LDT) and SEA STAR 8 (12,111 LDT) for USD 435/LT LDT enbloc with 500 and 800 T bunkers on board respectively at time of delivery.

The fact is that even if vessels have significant bunkers on board upon delivery, the premium for the vovage over to the sub continent is currently only some LISD 25-30/LT LDT. Once owners' factor in delivery costs and waiting time, the potential profits are virtually negligible (especially if there are significant bunkers on board that end buyers in China can cash in on).

Some interesting news for the week concerned the opening of a new ship recycling facility in Dalian, North China a joint venture with Singaporean owners PIL by the end of the year. The yard should be able to take some 70-75 vessels per year and will be of particular interest to those owners with vessels open in South Korea / Japan due to the proximity from there for deliveries.

Source: Steel Guru (Sourced from GMS Weekly). 21 March 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_11/255562.html

GMS report on CHINESE shipbreaking industry for WEEK 09 of 2012:

Far from wilting in the face of an overwhelming supply of tonnage, the Chinese market actually picked up this week for April deliveries (when much of the existing tonnage in yards is expected to be cleared out).

Two bulkers were concluded into the 430s/LT LDT - the ASPEN ARROW (8,603 LDT) for USD 432/LT LDT with 300 T bunkers ROB, and the Vietnamese owned full spares VSP RUBY (11,470 LDT) for the same level.

Tonnage continues to arrive and deliver but the price remains on the optimistic side while the Indian sub continent market continues to struggle.

Source: Steel Guru (Sourced from GMS Weekly). 8 March 2012

http://www.steelguru.com/chinese_news/GMS_report_on_Chinese_ship_breaking_industry_for_WEEK_09/253476.html

GMS weekly report on CHINESE shipbreaking industry for WEEK 07 of 2012:

After a turbulent last few weeks, Chinese prices showed some signs of settling finally -despite many yards still refusing to offer at numbers above USD 400/LT LDT.


Dry vessels have been seeing USD 405-410/LT LDT with wet vessels some USD 10-15/LT LDT ahead. Indeed several deals on dry vessels, general cargo and reefers were done just below in the high 300s and low 400s/LT LDT.


The one exception was the STX capesize bulker OCEAN QUEEN (23,138 LDT) - fixed by one ambitious Indian cash buyer at USD 430/LT LDT 'as is' South Korea with minimum fuel for the expected voyage across the Indian sub continent.

Source: Steel Guru (Sourced from GMS Weekly). 21 February 2012

http://www.steelguru.com/international_news/GMS_weekly_report_on_ship_breaking_industry_for_WEEK_07_2012/251311.html

GMS weekly report on Chinese ship breaking industry for WEEK 05 of 2012:

With festivities at an end, all eyes were on the Chinese market to see if they could replicate the form showed pre New Year. Unfortunately, the market opened up some USD 15 per LT LDT softer as many yards in both North and South, remain stuffed from the December to January binge on units.

To that end, momentum shifted back the way of the Indian sub continent in terms of buying where levels remain about USD 60 to 70 per LT LDT ahead at least. Even Bangladesh where prices have been somewhat soft of late, got back into the action with several high profile purchases.

The one deal concluded for the week concerned that of the MOL controlled smaller bulker TIWAI MARU sold for a firm USD 440 per LT LDT for green recycling

Source: Steel Guru. (Sourced from GMS Weekly).  8 February 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_05_2012/249284.html

GMS weekly report on Chinese ship breaking industry for WEEK 4 of 2012:

With Chinese New Year holidays fully underway, it was unsurprisingly a tar quieter week in both the local buying and selling.

It had been a frantic final few weeks before the holidays with the number of deals concluded to different yards reaching double figures -three Korean owned vessels -the capesize bulker DONG-A HERMES, panamax bulker FORTUNE CARRIER, and the handymax bulker MEGA ACE found buyers at extremely strong numbers.

It will be interesting to see if the markets here open up just as strong post holidays - as there were signs of receding numbers as capacity filled in the immediate days before.

Nevertheless, with the year of the dragon now underway, it is sure to be an extremely busy 12 months ahead with China looking to take home a record number of vessels in the increasingly central role they now occupy in the international ship recycling scene.

Source: Steel Guru. (Sourced from GMS Weekly). 01 Feb 2012

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_4_2012/248059.html

GMS weekly report on CHINESE shipbreaking industry for WEEK 03 of 2012:

Some frantic last minute deals ignited a market that many felt would be slowing down only a week before the Chinese New Year.

Several good looking bulkers were concluded at prices of USD 440 per LT LDT and up in the clearest sign yet that China is ready to close the gap with the markets in the Indian sub continent this year.

THREE Korean owned bulkers set the pace with the Italian built 1992 capesize unit DONG-A-HERMES fetching an extraordinary USD 447.5 per LT LDT. The full spares Sinokor controlled FORTUNE CARRIER was able to achieve USD 439 per LT LDT whilst the handymax bulker MEGA ACE captured USD 447 per LT LDT with 240 TIFO ROB at time of delivery.

With the New Year festival now firmly underway, it will be a quieter week at least in the Chinese market with many demo yards and owners virtually uncontactable for the duration of the holidays.

Source: Steel Guru (Sourced from GMS Weekly). 24 January 2011

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_3_2012/246875.html

Shipbreaking industry, "second five" plan being developed:

Reporters 2, learned from the Ministry of Transport is developing in the <<shipbreaking industry, 'second five'>> draft, 'second five' shipbreaking industry in China will strive to achieve the dismantling Hulk total 5 million -600 million tons of light.

Bill pointed out that China will strengthen the construction of shipbreaking industry legislation, regulate the flow of the Hulk, the implementation of fixed-point dismantling, to stamp out illegal shipbreaking, green strategy, to carry out clean production, promote green shipbreaking brand-building, positive publicity, promoting circular economy and building conducive to the development of shipbreaking industry platform and network system, focusing on ship dismantling recycling domestic waste, improve the supply capacity of the Hulk and the high value resource utilization.

Reporters learned that from late October, led by the Ministry of Commerce, Ministry of Agriculture, Ministry of Environmental Protection, Ministry of Communications and China associations shipbreaking research group, in Jiangsu, Zhejiang and operation of research shipbreaking industry and difficulties in seeking further support the introduction of shipbreaking industry development policy to ensure that the domestic ship recycling industry can be healthy and orderly development.

It is understood that the 'Eleventh Five-Year' period, the shipbreaking industry's contribution to energy saving is: save 7.25 million tons ore, reducing the 18(http://www.f-paper.com/).45 million tons of iron ore mining native, saving 2.52 million tons of standard coal, 11.84 million tons of water consumption, 1.18 million tons of limestone, saving nearly 81 million tons capacity, reduce 7.69 million tons of carbon dioxide emissions.

Informed sources said that the current difficulties facing the Chinese shipbreaking companies focused on tax and Fei Gangchuan purchase price. In accordance with existing laws and regulations, domestic shipbreaking purchase of Fei Gangchuan input VAT invoices can not be issued, which means was not finished in the Fei Gangchuan dismantling of foreign sales, through the sales tax for items deductible, while the 17% tax shipbreaking yards and ship owners are selling can not afford, so the shipbreaking yards in recent years there has been domestic more of a dismantling of the phenomenon of foreign Fei Gangchuan this end, shipbreaking research group, or reflect the situation up, put more support further development of shipbreaking industry policy to ensure that Chinese shipbreaking industry, a healthy and orderly development.

Source: Free Paper, World News. 3 December 2011

http://www.f-paper.com/?i1044612-Ship-breaking-industry-%22second-five%22-plan-being-developed