Ship breaking market in Alang (Gujarat), world’s 5th largest shipping yard, has witnessed price correction of INR 500/MT after a sharp rise.
Prices of melting and re-rollable scrap generated from ship breaking corrected by INR 500/MT today after a sudden spurt in prices by INR 1000-1100/MT in last few days.
Slowdown in finished steel demand especially low buying of TMT is the major reason for this downfall in prices. Apart from this, there are few more reasons that came to light while speaking to market participants. Ingot prices in Mandi Gobindgarh, which is considered as a benchmark market, have declined by INR 200-300/MT today. In addition to this, Buying is also low from nearby states like Rajasthan & Madhya Pradesh- the major buyers of Scrap generated from shipping yard.
The retarded condition of secondary steel market in India coupled with depreciating Indian Rupee has resulted in diversion of vessels to countries like Bangladesh & Pakistan instead of Alang, the major ship breaking region in the country. This has led to an imbalance in generation of domestic Scrap.
Currently, prices of general cargo reaching to the country for breach are in the range of USD 460-470/Lt LDT, while prices of tanker are at USD 490-500/Lt LDT.
|
Bhavnagar
|
Size |
Prices |
W-o-W |
M-o-M |
|
4 Ane |
26,300 |
-700 |
-350 |
|
|
6 Ane |
27,200 |
-750 |
-700 |
|
|
8 Ane |
27,800 |
-700 |
-700 |
|
|
10 Ane |
28,200 |
-800 |
-700 |
|
|
12 Ane |
28,400 |
+150 |
-700 |
|
|
1 Inch |
28,500 |
-750 |
-550 |
|
|
1-2 Kg |
26,200 |
-550 |
-450 |
|
|
2-5 Kg |
27,400 |
-500 |
-600 |
|
|
5-10 Kg |
27,900 |
-600 |
-600 |
|
|
HMS 80:20 |
25,500 |
-700 |
-650 |
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