- China Steel Express intends to sell quartet as it takes delivery of eight new buildings.
- China Steel Growth and China Steel Excellence were put on the sales block recently.
- An unnamed Chinese firm has agreed to pay $20m to purchase them.
- The other two sales candidates are the 176,000-dwt China Steel Integrity and Steel Responsibility.
- The company has ordered eight 208,000-dwt newbuilds with four being fitted with scrubbers.
According to an article published in Tradewinds, Taiwanese owner intends to sell quartet as it takes delivery of eight new buildings.
Vessels placed on the sales block
China Steel Express, the shipping arm of Taiwan’s largest steel producer, has begun to sell some of its oldest vessels as part of its fleet renewal.
Brokers said the 176,000–dwt China Steel Growth and China Steel Excellence were put on the sales block recently and an unnamed Chinese firm may pay $20m for them en-bloc.
China Steel Express has a stated goal of selling four aged Capesize bulkers by 2023 based on market conditions.
The other two sales candidates are the 176,000-dwt China Steel Integrity and Steel Responsibility.
According to Chairman Lee, the company has ordered eight 208,000-dwt newbuilds, among which five have been delivered already. Moreover, four of the eight vessels are fitted with scrubbers. This move is also to mitigate the spread between HSF and LSF.
Prudent approach
The larger ships are used for importing coking coal and iron ore while the smaller ones are used for coal.
The audited results show that pre-tax profits of $66. 7m on revenues that accounted for 88% of profits.
The company also focuses to be self-sustained to create better revenues and profits. As a part of this idealogy, the company plans to focus on new builds.
Decarbonization and LNG
Lee has expressed that the company has not charted out any plans as of now for newbuilds using LNG. It might depend on business requirements and new building prices with the right timing.
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Source: Tradewinds
