Global offers for ship breaking to India slide by around USD 10- 15/MT this week due to falling Indian currency and low demand.
Global offers for Ships fell by around USD 10-15
Global slow down in Steel industry, clubbed with over booking of general cargoes in the month of Apr’15, has now resulted in a silence, in Ship buying activities. As an outcome of it, prices of general cargo have witnessed a fall of around USD 10-15/MT and are at USD 375/MT in India, at USD 370/MT in Bangladesh & at USD 370/MT in Pakistan, CFR basis.
India continues to suffer currency depreciation, making imports further expensive. Indian Rupee fell to a 20-month low at 64.17/USD. Indian Ship-breaking plate prices continue to trade at low levels, resulting in low-buying of Ships for demolition this week. Current offers for 10-20 mm MS plate prices were assessed at INR 30,000/MT (ex-works), also some secondary re-rollers offered same width at INR 28,500/MT on ex-works basis.
Whereas, in Bangladesh & Pakistan, over bookings in previous weeks have muted the market at present. Speculation on increase in import duty in the upcoming budget in these nations, made the buyers book cargoes beyond their appetite. The logic behind it was just to stock as many as possible ships for demolition in the coming months. Currently tankers in both the nations are offered at USD 400/LT LDT.
Global Cargo Prices as on Week 18
| Delivery | Grade | Prices in USD/LT LDT | W-o-W Change |
| CNF Chittagong, Bangladesh | General Cargo | 370 | – 10 |
| Tanker | 400 | 0 | |
| CNF Alang, India | General Cargo | 375 | – 15 |
| Tanker | 400 | – 10 | |
| CNF Gadani, Pakistan | General Cargo | 370 | – 15 |
| Tanker | 400 | – 5 |
Source: SteelMint Research
Ship Breaching at Alang
Ship breakers at Alang have completed breaching one ship this week, recovering around 7,122 LT LDT. They expect arrival of three more vessels, out of which 28,457 LT LDT is expected to be recovered. Meanwhile 6 vessels are waiting to breach & would yield at around 51,806 LT LDT.
Last month, India recovered 127,255 LT LDT of Scrap (Melting & Re-rollable) out of the 14 vessels breached (Apr’15).
Prices at Alang fall by upto INR 400/MT
Although prices of Steel plate are still in red, offers for most of its grades are on the verge of recovering from the past falls witnessed last week.
Low buying activity in imported scrap hit domestic scrap too. Prices of melting scrap slides marginally to INR 21,450/MT, ex-yard.
Alang Ship Breaking Prices as on 7 May’15
| Delivery | Size/Grade | Prices in INR/MT | D-o-D* Change | W-o-W** Change |
| Ex-Bhavnagar | 1 Inch | 25,500 | 0 | 0 |
| 1-2 Kg | 22,500 | – 50 | – 500 | |
| 2-5 Kg | 24,400 | 0 | + 50 | |
| 5-10 Kg | 24,850 | – 50 | – 50 | |
| 6-8mm | 24,000 | 0 | 0 | |
| 9-11mm | 24,550 | 0 | + 50 | |
| 12-14mm | 24,950 | 0 | 0 | |
| 15-18mm | 25,250 | – 50 | – 50 | |
| 19-22mm | 25,350 | – 50 | – 50 | |
| HMS(80:20) | 21,450 | – 50 | 0 |
* Day-on- Day
**Week-on-week
Source: SteelMint Research
INR as on 07 May’15 assessed at 64.30 against USD
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