China looks to Korea for chemical tankers

China’s Sinochem Group recently signed a letter of intent with 21st Century Shipbuilding of South Korea to build four 20,000-dwt stainless-steel chemical tankers. Both parties to the deal are said to be deep in negotiations over price levels with the yard reportedly for $40m while Sinochem is said to be seeking a lower figure.

Brokers say it is difficult to set a price as second-hand values have fallen by 30% in the past year but building costs remain high. 21st Century said a firm order for the newbuildings would be inked before October with delivery dates slated for the first half of 2011 and beyond.