Shipping industry and scrapping industry have a counter-balance relation. That is to say: when the shipping market runs smoothly, shipowners do not want to scrap ships and the scrapping industry is in depression relatively.

Since 1990s, the rule was never broken out. Especially in 2008 the shipping golden period, it is very obvious that stepping into the scrapping yards just like in jungle of overgrown weeds. As the financial crisis happened, the shipping industry rocked bottom and the scrapping industry saw new development. Most scrapping yards held this opportunity to push the industry into a new peak.

But not for long, with the demand for steel falling in the market, the steel mills was discontinued or running at half capacity, which caused the demand for the scrap steel lower and the price falling.

Analysts said due to the weak of shipping market, there will be a large amount of ships scrapped into scrap steel market. However, in fact, the situation did not appear. What is the problem? Less supply or more demand? Both shipping and scrapping industries are in struggle to get through the hard times.