Global offers for ship breaking remained stable this week, despite low buying in India & Bangladesh. Pakistan seems to be the only active buyer in the market right now.
Global Prices remain undaunted
India hit by currency depreciation, which fell to around 63.5 against USD, this week, is making buyers cautious about taking positions. Meanwhile, the fall in domestic plate prices in Indian market has also created resistance in the minds of Ship importers. Current offers for prime grade MS plates are assessed at INR 29,500-30,500/MT on ex-yard basis.
Whereas in Bangladesh, owing to pre-budget speculation on increase in import duties in Ship-breaking, manufacturers have already booked huge quantities. The current status of the ships they have booked are either ready to breach or expected to arrive. Hence, the upcoming weeks are expected to remain silent in Bangladesh on the buying front.
Pakistan remains an active buyer, booking around 4-5 vessels this week, same as the previous. The country is making similar efforts as Bangladesh, to ship more & more vessels before the announcement of Budget FY15-16 in Pakistan.
Global Cargo Prices as on Week 17
| Delivery | Grade | Prices in USD/LT LDT | W-o-W Change |
| CNF Chittagong, Bangladesh | General Cargo | 380 | 0 |
| Tanker | 400 | 0 | |
| CNF Alang, India | General Cargo | 390 | 0 |
| Tanker | 410 | 0 | |
| CNF Gadani, Pakistan | General Cargo | 385 | 0 |
| Tanker | 405 | 0 |
Source: SteelMint Research
No. of Ships to India fall by 50%
Vessels coming to India for breaching, witnessed a sharp fall by around 50% in Apr’15, compared to the previous month. Around 14 vessels were breached in Alang in Apr’15, whereas around twice (27 vessels) were breached in Mar’15.
India recovered 127,255 LDT of Scrap (Melting & Re-rollable) out of the 14 vessels breached this month (Apr’15).
Prices at Alang fall by upto INR 400/MT
Price fall in domestic steel this week, hits demand of ship breaking plates at Alang. As a result, prices here witnessed a fall of around INR 200-400/MT W-o-W.
On the other hand, melting Scrap on the back of imported scrap offers firming up, showcased an improvement of INR 200/MT W-o-W.
Alang Ship Breaking Prices as on 2 May’15
| Delivery | Size/Grade | Prices in INR/MT |
D-o-D Change | W-o-W Change |
| Ex-Bhavnagar | 1 Inch | 25,500 | 0 | -200 |
| 1-2 Kg | 22,800 | – 200 | -400 | |
| 2-5 Kg | 24,300 | – 150 | -250 | |
| 5-10 Kg | 25,000 | 0 | -50 | |
| 6-8mm | 24,050 | 0 | -150 | |
| 9-11mm | 24,600 | + 50 | -200 | |
| 12-14mm | 25,000 | – 50 | -200 | |
| 15-18mm | 25,350 | 0 | -100 | |
| 19-22mm | 25,400 | 0 | -200 | |
| HMS(80:20) | 21,500 | 0 | + 200 |
Source: SteelMint Research
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