International ship breaking trade has frozen from past 14 days. Buyers in panic looking at continous fall in steel prices, sellers withdrawing offers from the market.
Shipbreaking market in Asia witnessed a sudden fall of around USD 10-15/MT in a week’s time. Past two week assessment suggests a decline of USD 20-30/MT. Prices corrected on the backdrop of a fall in global steel prices, rooting from China. Re-rollers prefer cheap prime billet and plates from China over ship cutting plates.
According to sources, only those deals which were committed earlier by cash buyers and the cargoes in display from over a month were sold. No fresh trade was reported in market.
One of the cash buyers at Alang said, “We had to suffer a loss of around USD 20-30/MT for vessels owing to our commitments. A 10,000 tonnes bulker vessel, which we committed 3 weeks back to an exporter at around USD 355-358/MT, was finally sold to a ship-breaker on loss. The deal was finalized at USD 323-325/MT last week.”
Current offers for ship breaking in India for 5,000 ton bulkers are at USD 270-280/MT, 10,000 ton bulkers at around USD 290-300/MT, tanker around USD 310-315/MT and container at USD 320-325/MT.
Offers at Neighboring Market
Shipbreaking market at Bangladesh & Pakistan continues to remain mute this week, despite end of festival. Though the market had high hopes for some trade to take place post-Ramadan, but perhaps countries carried the holiday mood for this week too. Meanwhile, Chinese billets were dominating in Bangladesh market.
Bangladesh based re-rollers are more inclined toward Chinese billets rather than ship cutting plates. Though, no sales were reported, offers here for dry cargoes & general bulkers were heard in the range of USD 280-300/MT and container & tanker were heard around USD 320/MT.
Comparatively, buying at Pakistan is little aggressive and is definitely a preferred choice for ship-suppliers, as the country is unaffected by Chinese billet offers and stable, unlike the domestic pressure in India.
Offers for dry ships at Pakistan were heard at USD 290-295/MT, bulker & general cargoes at USD 300-310/MT and tankers at USD 320-330/MT.
Global Ship-breaking Price on week 30, 2015
| Particular/Delivery | Size/Grade | Prices | D-o-D | M-o-M |
| CNF Alang, India | General Cargo | $300 | -$10 | -$60 |
| Tanker | $330 | -$10 | -$50 | |
| CNF Chittagong, Bangladesh | General Cargo | $305 | -$10 | -$60 |
| Tanker | $335 | -$10 | -$50 | |
| CNF Gadani, Pakistan | General Cargo | $300 | -$10 | -$50 |
| Tanker | $330 | -$10 | -$50 |
Source: SteelMint Research
Indian Ship-breaking Prices Declined upto INR 1,000/MT W-o-W
Along with global market, domestic ship-cutting plate and melting scrap have fallen upto INR 1,000/MT in a week’s time. However, M-o-M fall is close to about INR 3,000/MT.
Participants at Alang are expecting a fall of another INR 700-1,000/MT in melting scrap, which is currently at INR 17, 400-450/MT, ex-yard.
Alang Ship-cutting pricesas on 25 Jul’15
| Particular/Delivery | Size/Grade | Prices | D-o-D | W-o-W | M-o-M |
| Ex-Bhavnagar | 1 Inch | 21,600 | 0 | -700 | -2,800 |
| 1-2 Kg | 18,850 | 50 | -350 | -2,350 | |
| 12-14mm | 21,000 | -50 | -500 | -2,900 | |
| 15-18mm | 21,300 | -50 | -500 | -2,900 | |
| 19-22mm | 21,500 | 0 | -600 | -2,800 | |
| 2-5 Kg | 20,300 | -200 | -1,000 | -3,200 | |
| 5-10 Kg | 20,800 | 0 | -900 | -3,050 | |
| 6-8mm | 19,700 | 0 | -700 | -3,200 | |
| 9-11mm | 20,500 | -100 | -900 | -3,100 | |
| HMS(80:20) | 17,450 | 50 | -350 | -2,300 |
Source: SteelMint Research
Bhavnagar Ship-breaking Stats
Indian ship-breaker have breached around 12 ships this Jul’15, recovering around 93,619 MT of ship plates and melting scrap. Around 3 cargoes (2 general & one crane vessel) are waiting to be breached and a bulker carrier of 6,727 MT is expected by Sunday.
Indian ship-breaker in Jun’15 have breached around 23 ships of around 194,600 MT.
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