Alang – one of the largest ship breaking recycling yards situated in west coast Gujarat, India, has about 150-200 plots, of which about 50% are currently operational. Recycled scrap from this yard is supplied to a number of ingot and billet manufacturers specifically in Bhavnagar and surrounding trajectory.
SteelMint learned from trade associates that ship breaking scrap may get costlier or may remain supportive due to lack of oxygen supply which is required for material segregation (cutting process). Recently, oxygen price has risen significantly and is currently reported at INR 25/cubic meter as against INR 17/cubic meter earlier.
Although it’s hard to define the consumption of oxygen by each plot due to unspecified material as size, length and thickness varies depending upon ships and plots. As per trade participants, an average single plot requires about 3 to 4 t of oxygen.
Further, sources shared that a few plots may halt operational activities for a couple of days on weekly basis, until oxygen supply eases to a normal level. However, this is yet to be confirmed.
— As per SteelMint’s weekly assessment, scrap prices in Alang rose by INR 500-700/t. For ship breaking HMS (80:20) offers stood at INR 24,700/t & attachment scrap at INR 25,700/t exw.
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