China’s shiprecycling industry suffered a loss of more than RMB200 million in the first half of this year, showed incomplete statistics.

The loss is mainly caused by dipping prices in steel scrap amid dampened demand, according to a media report, citing a person in charge from China’s Ministry of Industry and Information Technology,

Climbing costs of shipbreakers in environmental protection, financing and labor is also a factor, added the same person.

The price of the domestic steel scrap had declined 8.9 percent as of the end of June compared with that of earlier this year, and the figure stood at 12.3 percent on an annual basis, revealed data by China National Shiprecycling Association (CNSA).

A slowdown in the global economy has led to less demand for steel.

If the Chinese government can offer support to shiprecycling companies in taxation, they will get better off when abiding by the green recycling standard at home, the report quoted a market participant as saying.

Chinese shiprecycling players have to pay 3 percent import tariff for scrap vessels, while import of iron ore and steel scrap required no tariffs, the report noted.