Alang: There are mixed sentiments in bulk ship breaking market. On one hand, appreciating Rupee gives an advantage to Indian importers and on the other, falling imported Containerized Scrap prices become a challenge. Buyers prefer to wait till market gets a direction. Dry ship prices are assessed at around USD 390/LT and Box ship prices assessed at USD 410/LT, CIF India; down by USD 10-15/MT compared to last week. Indian Rupee also remained firm against US dollar. Presently, the currency is trading at 61.60 per USD, which was at 63.6 level on 7 Jan, 2015.
Imported Scrap offer to India from Europe and Middle East have fallen by USD 5-10/MT this week. An importer that deal to West India from Middle East says, “We are finding tough to sell HMS I&2 at USD 300-305/MT, CIF Nhava Sheva. Market also has rumors of low imported Billet offer to India from China. However, there is no concrete news on the same. Present offer of Billet to India is heard to be at USD 410-420/MT, CIF West Coast India.”
Domestic Scrap prices in India show a positive sign with an uptick of INR 100-200/MT. Whereas, MS Ingot and Billet prices have declined by INR 300-500/MT. Market participant says domestic Scrap is trading at a high price owing to low availability and high holding capacity of traders.
Alang is the largest ship recycling yard in Asia, which handled about 305 ships in 2013 and about 286 ships in 2014. Alang is also a major source for Scrap generation in India. However from Sep’14, number of ships to break has reduced to 16 (as average from Sep’14-Dec’14) from average of 28 ships (Jan’14-Aug’14).
Indian Scrap Prices as on 21 Jan’15
| Size | Grade | Price | W-o-W | M-o-M |
| 4 Ane | Ship Breaking | 25,200 | – 300 | – 300 |
| 6 Ane | Ship Breaking | 25,800 | – 300 | – 300 |
| 8 Ane | Ship Breaking | 26,200 | – 300 | – 200 |
| 10 Ane | Ship Breaking | 26,700 | – 200 | 0 |
| 12 Ane | Ship Breaking | 26,800 | – 200 | – 100 |
| 1 Inch | Ship Breaking | 26,900 | – 200 | – 100 |
| 1-2 Kg | Ship Breaking | 23,300 | – 400 | – 1,100 |
| 2-5 Kg | Ship Breaking | 25,500 | – 500 | – 600 |
| 5-10 Kg | Ship Breaking | 26,200 | – 300 | – 400 |
| HMS(80:20) | Ship Breaking | 22,300 | – 300 | – 800 |
Basic prices in INR/MT
Excise duty @12.36%; VAT as applicable
Source: SteelMint Research
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