GMS update on Shipbreaking in China in Week 06 - YEAR OF THE DOG!

Image Source: steelguru.com

Upcoming Chinese New Year holidays towards the end of this week will certainly see yards closed and key personnel away for the next week.

In the grand scheme of events, this is hardly expected to make much of an impact locally, given that only a couple of Chinese yards are presently open for business as the remainder are still closed, pending approval of their operating licenses from the Chinese government.

Moreover, on the pricing front, the Chinese ship-recycling market is struggling to remain competitive with even Turkey and far from the comparatively massive offerings emanating from the various Indian sub-continent locations.

As such, market activity going into Chinese New Year holidays will overall be the same as when New Year celebrations commence.

We do expect that a certain few yards would be renewing their licenses after the New Year, as only two recycling yards presently have their licenses in place – certainly an abysmal number given China’s historical operating record.

Source : Strategic Research Institute, SteelGuru