New ship scrap incentive from China

SteelOrbis has learned from market sources that in Turkey's Aliaga region - the only region in Turkey where ship scrapping is allowed - ship scrap prices are still ranging at $380-390/mt ex-yard, while sources state that demand is at good levels in the local market.
 
On top of incentives for scrap generation in Turkey, news of another scrap incentive has come from China, the world's largest shipbuilder. Accordingly, the Chinese government will pay ship owners a sum of RMB 1,500 ($247/mt) per gross ton for ships to be scrapped. The Chinese government aims with this move to reduce carbon emissions from older ships and to limit total fleet capacity. However, it is remains to be seen how this measure, which will remain effective until the end of 2015, will affect ship yards.