There are 3 big area less than 10 major players qualified the true green recycling condition, who are sitting down here beside you. The formal routing from EU ship owners are asking scrapyards several major players send tender to bid the opportunity, and the result is highest bidder wins.

Adopting the strict green recycling method means more cost than for the common vessels, while the quotation from the scrapyards for the “green vessels” is almost at the same price level as for others, resulting in lower profit for the scrapyards.

According current market competition, scrapyard buying recycling vsl by market price which means no bonus beneficial, and there will be so hard to perform recycling regulation procedure.

Abt 15~20 years ago, government encourage yards import overseas demo vsl scrap in china and get rebate after.

Many people establish small small yard to join the game.

And let ‘s see many years later and current time since last Oct till now, which is so hard to bought a demo vsl not even mention green recycling vsls.

Certainly, the price difference guiding the market, and all the yards survived by the new policy of Chinese vsl allowance major from COSCO & CHINA SHIPPING.

We speculate the policy avail till end of 2014, and if the market remain downturn, how our scrapyard continue…

All the foundation we make, all the equipment we invest, all the new technology system we build up will destroyed in suddenly.

I don’t know if your guys been visit Chinese major scrapyard before, also visit India or Bangladesh ‘s scrapyard to compare, you guys will definitely use china as green recycling shipyard for your demo vsl.

Over 100s vsl scraped in china from all over the world every year, but pls reconsider my Q is how many via green recycling channel? Official statistics showed this channel is less than 10%.

India, Pakistan & (or) Bangladesh do not be qualified the meaningful green recycling ship yard at this moment, but I do believe all those shipyards will catch up by rule of law also int’l norms of behaviors.

BTW, the Chinese environmental laws are increasingly strict requirements.

But unfortunately, this still cannot guarantee a promising future for the green recycling in China.

To be honest, not only the green recycling but the whole ship breaking industry in China has been facing a very difficult situation for the last two years.

As a result of the economic downturn, there are less large infrastructure projects to be expected & the booming investment in real estate is gone.

All the related industries are facing risks and challenges of this hard landing of the economy. Which make the steel demand reduce rapidly.

Of course, this issue brings the ship breaking industry into a awkward situation.

On the one hand, the more ships we break, the more money we lose.

All the major scrapyards are holding a large quantity of stock nowadays.

We can’t solve our stock problem unless the price and the quantity demanded rise at the same time, but we all know it that it will take a while according to the performance and the trend of home & abroad market.

On the other hand, our scrapyards will suffer great financial pressure from capital cost, opportunity cost, labor cost, management cost and so on if we stop running our business.

In summary, the ship scrap market is experiencing a huge fluctuation after the financial crisis.

Chinese scrapyards make a great contribution during each transaction.

The main reason is that we bought too many vsls at a very high price level, but the industrial cycle is so long that we can’t recapture our capital until now.

In fact, according to currently intensive economic circumstance, most people speculate market will remain trough till next few mons even years.

There is no doubt that it’s too difficult for us to focus on the green recycling when survival becomes the most important issues and we all struggle for it.

I mean the honest giants of the ship breaking yard not only in China also in Turkey India Pakistan and so on.

- Base abv issues, I am quite curious who are the biggest beneficial from Chinese green recycling shipscraping?? Is there any solution for our pitty scrapyard owners?

EU shipowners & Chinese scrapyards are making great contribution to the green recycling we did mentioned many time ago.

This is not a sustainable mode in the long term.

In order to change the survival of our living environment, I believed more and more ship owners improve demolition level to match truly green recycling shipyard regulation, also provide great quality services to avoid any “cut-throat competition”.

I am here not try to explain of rhetoric on behalf of ship breaking owners, the truth is extremely intermediate costs reducing performance becoming the FORMAILTY “green recycling”!

How to prevent barbaric & injure to our living environments by uncivilized scrap vsl instead standard precise green recycling demolition by correct channel, the truly perform hazardous material benefit various stakeholder’s interest.

GWS will be more than happy to share our resources to various nobel shipowners to establish path for the truly green recycling ship scrap in china.

On the other hand, our suggestions to our scrapyard owners per your reference that expand & increase our downstream channel:

1. elite in the industry enhancer renewable product

2. improve added value of renewable product

Improve the product of cultural values

Improve the use value of product

3. transfer investment center from china – south east asia

Author: Greatwall Shipping Limited/Steven