Six vehicle carrier ships arrived at Alang port based in western part of India, SteelMint’s reliable sources reported.
Below are the ships that have arrived for recycling-
— JINGU – 11,404 LDT at $285/LT.
— COUGAR ACE – 13,767 LDT at $300/LT.
— ARCADIA HIGHWAY – 12,784 LDT at $288/LT.
— AEGEAN LEADER – 13,160 LDT.
— EURO SPIRIT – 1,270 LDT at $282/LT.
— OCEAN HIGHWAY – 14,000 LDT.
Sources added that JINGU beached in plot no. 23, ARCADIA at no. 21 & AEGEAN beached at plot no. 35. Deals for majority of them are reported to have concluded except one which is under negotiation.
Prices drop significantly
Ship breaking import offers in India have fallen below $300/LT, the key factor behind falling prices is sufficient availability of ship breaking scrap as the huge number of ships already beached on the recycling yards & continue arriving ships in Alang port. Continued increased supply on one side & the slow outflow of material from the yards due to the monsoon on the other side created imbalance.
Interestingly, there are still vessels arriving in Alang that which deals were concluded in January/February this year but the ships were unable to arrive due to the lockdown & strict conditions on port.
As per SteelMint assessment, last week the prices of ship breaking stood at $295/LT for Containers, $275/LT for Dry bulk and $285/LT for Tanker. And the total tonnage reported last week in the Alang port was at 187,174 LDT.
Will prices fall further ?
Sources believe that, due to the onset monsoon, ship beaching activities will remain slow in the coming days, while continued arrival of ships may impact on trades & prices as well. Hence prices of imported scrapped ships are likely to remain under pressure in coming days due to stagnant demand from Indian buyers.
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