GMS update on Shipbreaking in China in Week 1 - NO CHANCES!
As the sub-continent markets push further on, there was simply no competing for a lackluster and sluggish Chinese ship recycling industry, which is now positioned a seemingly unsurmountable and in excess of USD 200/LDT away.
A healthy majority of domestic yards still do not have clarity on how soon they will manage to renew their licenses and this indicates that until after Chinese New Year, there will still be an incredibly small number of recycling yards that are open and capable of negotiating tonnage.
At present, there are only two major yards open and able to take in scrap vessels albeit at massively reduced prices – one in the North of China (Shanghai region) and the other in the South of China (Xinhui port).
As such, China has virtually no chance of being a noteworthy competitor for at least a few weeks ahead.
Source : GMS Weekly