Cheap Chinese steel holding back ship scrapping

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After a brisk first six months in the ship demolition market in 2014, especially in the container sector, the brakes were applied in the second half by a sharp drop in steel prices.

Here BIMCO looks at the demolition market this year for containerships, bulkers and tankers, which has started off still under pressure from Chinese exports of cheap steel billets, forcing rates below $400 per LDT. BIMCO notes that India and Pakistan have announced their intentions to impose a tax on Chinese steel, but so far this has not happened and while China has a surplus the market seems likely to continue to head south and owners will defer scrapping their ships.