Alang – one of the largest ships breaking yard in the world has been ordered to halt activities as per recent order by Govt. of Gujarat (Gujarat Maritime Board) amid cyclonic storm ‘Vayu.’ Alang is located in Gujarat – western India.
The letter said “everyone engaged in ship recycling of ships directly or indirectly to stop all the activities including pulling of ship lowering of objects etc from 19:00 hrs, 11 June’19.
It is further instructed that, no one will do any ship recycling activity or allow any to do so till further orders from the govt.”
As per inputs received from Priya Blue and Best Oasis, Govt of India has indicated Distant Cautionary Signal Number one (DC-1) at all the ports of north and south Gujarat coast.
Out of total steel production in India, about 1-3% is produced from the ship breaking scrap.
Will “VAYU” cyclonic storm strengthen scrap prices?
As per SteelMint conversation with participants, the ship breakers in Alang (Gujarat) have sufficient stock for around 3-5 days due to less lifting on falling steel prices.
However, to take advantage they may temporary raise offers up to certain levels to improve lifting.
Meanwhile it’s been learned among trade participants that Billet & Rebar prices may increase due to shortage of ship breaking scrap as most of the plants usually maintain the stock of scrap for a week’s duration.
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