Chinese shipbreakers are heading for a another downturn as domestic scrap prices plunge to record lows, Platts said citing data from the China National Shiprecycling Association.

Despite the country’s attempts to subsidize decommissioning of older ships losses have pilled up, reaching USD 32.5 million in the first half of the year. According to the Association, the second half of the year will see shipbreakers sink deeper into the red.

The number of vessels broken in the second half will also shrink from the 136 in the first six months, a figure equivalent to 1.1 million light displacement tons, or 4.9 million dwt, an association official told Platts, declining to disclose estimates for the second half.

Spot prices of heavy melting scrap 6mm thick and above fell to Yuan 1,920/mt delivered Zhangjiangang, Jiangsu, on September 19, a record low since March 2005, Platts said.

Shipbreakers were cited by Platts as saying that they were experiencing tough times, with some of the smaller ones having closed down this year.