Declining melting Scrap prices in the global market has dented buying interest for bulk ship available for demolition. On one hand, Scrap offers have fallen over USD 60/MT in last one month, on the other, ship breaking prices have declined by USD 50-60/MT during the same period.
Current prices for general cargo assessed at USD 350/ldt, CIF India. While, Shredded Scrap offers are hovering in the range of USD 275-280/MT, CIF India. Indian importers are cautious while taking position owing to consistently falling Scrap prices and lower Billet offers from China & Russia.
Global Ship Breaking Price as on 16 Feb’15
| S. N | Country | General Cargo | Tanker | ||||
| As on 16 Feb’15 | As on 30 Jan’15 | Change | As on 16 Feb’15 | As on 30 Jan’15 | Change | ||
| 1 | Pakistan | 350 | 385 | -35 | 370 | 410 | -40 |
| 2 | India | 350 | 385-390 | -35 | 370 | 410-415 | -40 |
| 3 | Bangladesh | 350 | 390 | -40 | 370 | 415 | -45 |
| 4 | Turkey | 220 | 275 | -55 | 230 | 285 | -55 |
| 5 | China | 200 | 220 | -20 | 215 | 250 | -35 |
Prices in USD/MT
Source: SteelMint Research
Alang is one of the largest ship breaking yard in the world. On an average 285-295 Ships are being demolished every year, which generates ship cutting plates (used by small rolling mills) and melting scrap.
Alang Scrap Prices as on 16 Feb’15
| Size | Grade | Price (Basic) | W-o-W | M-o-M |
| 4 Ane | Ship Breaking | 23,500 | – 100 | – 2,000 |
| 6 Ane | Ship Breaking | 24,400 | + 100 | – 1,700 |
| 8 Ane | Ship Breaking | 24,900 | 0 | – 1,600 |
| 10 Ane | Ship Breaking | 25,400 | 0 | – 1,500 |
| 12 Ane | Ship Breaking | 25,500 | 0 | – 1,500 |
| 1 Inch | Ship Breaking | 25,600 | 0 | – 1,500 |
| 1-2 Kg | Ship Breaking | 22,200 | + 200 | – 1,600 |
| 2-5 Kg | Ship Breaking | 24,200 | + 100 | – 1,800 |
| 5-10 Kg | Ship Breaking | 24,800 | + 100 | – 1,700 |
| HMS(80:20) | Ship Breaking | 21,200 | + 200 | – 1,500 |
Excise duty @12.36%; VAT as applicable
Source: SteelMint Research
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