Ship breaking prices in Alang, Asia’s largest ship recycling yard, noticed a downfall of USD 10-15/MT due to falling Indian Rupee against USD. Current offers for Box ship are assessed at USD 435/MT and for Dry ship at USD 405/MT.
Ship Plates and melting Scrap prices in Alang have stabilized after moving up by INR 500-600/MT W-o-W.
Indian Rupee depreciated over 3% and hit 13-month low at 63.8 per USD, which is one of the major reasons for price correction of ship breaking Scrap by about 3%.
Alang is the largest ship recycling yard in Asia, which handled about 305 ships in 2013 and about 280 ships in 2014 (till Jan’14-Dec’14). Alang is also a major source for Scrap generation in India and generates 4 MnT Scrap every year, as per SteelMint analysis.
Ship Breaking Scrap & Rolling Retail Offers move up
Ship breaking melting Scrap prices in Alang moved up sharply to INR 23,800/MT on 13 Dec, 2014 due to rising offers from Middle East suppliers as Europe/US exports were heard at a low level due to Christmas holidays. Presently, imported Scrap offers are in the range of USD 315-317/MT, CIF Nhava Sheva.
Current Ship Breaking Scrap & Rolling Prices in Alang as on 17 Dec, 2014
| Particular | Grade | Price (Basic) | W-o-W | M-o-M |
| HMS(80:20) | Ship Breaking | 23,700 | + 500 | + 1,300 |
| 4 Ane (6-8 mm) | Ship Breaking | 25,800 | + 200 | + 1,000 |
| 6 Ane (9-11 mm) | Ship Breaking | 26,400 | + 300 | + 1,100 |
| 8 Ane (12-14 mm) | Ship Breaking | 26,900 | + 400 | + 1,100 |
| 10 Ane (15-18 mm) | Ship Breaking | 27,200 | + 400 | + 1,000 |
| 12 Ane (19-22 mm) | Ship Breaking | 27,300 | + 400 | + 1,000 |
| 1 Inch | Ship Breaking | 27,400 | + 400 | + 1,000 |
| 1-2 Kg | Ship Breaking | 24,800 | + 400 | + 1,450 |
| 2-5 Kg | Ship Breaking | 26,500 | + 400 | + 1,200 |
| 5-10 Kg | Ship Breaking | 26,900 | + 300 | + 1,100 |
Prices in INR/MT; ED/VAT Extra
Ex-works prices
Looking ahead: Market participants expect Scrap prices to decline in Alang owing to volatility in currency and lower demand from domestic companies. Participants also highlighted that increasing imports of Scrap in containers from Middle East, Europe and South Africa, for which deliveries will be made in December/January, will put pressure on domestic Scrap prices.
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