Bulk ship breaking prices in Indian market continued to remain weak amid falling steel prices in the domestic market and increase in offers from China and Russia at a very competitive price. Indian buyers avoid exposure in ship breaking market and prefer smaller ships over larger ones.
Though, Indian Rupee is strong against USD, which is at the level of 61.4 per USD, importers are not in a hurry to make aggressive purchases.
Global Ship Breaking Price as on 27 Jan’15
| S. No. | Country | General Cargo (USD/ltldt) |
Tanker (USD/ltldt) |
| 1 | Pakistan | 390 | 415 |
| 2 | India | 390 | 415 |
| 3 | Bangladesh | 385 | 410 |
| 4 | Turkey | 305 | 315 |
| 5 | China | 220 | 250 |
Source: SteelMint Research
In addition, containerized Scrap offers from European countries noticed a fall of USD 5-10/MT last week, with HMS 1&2 offered at USD 290-295/MT, CIF and Shredded at USD 315-320/MT, CIF India. India domestic prices also plunged down by INR 500-800/MT last week due to week semi finish steel prices. MS Billet prices declined by INR 400/MT and INR 800/MT in Mumbai and Chennai respectively.
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).
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