The number of ships arriving for demolition in Alang (Gujurat) remained stable in Jun’16 as compared to May’16. In Jun’16 also, total 17 ships have arrived to Alang; the same figures as in the month of May’16. There are still 5 ships carrying 40,022 LDT material in this month waiting for breaching. However, no vessels are expected to arrive this month.
Currently in Indian domestic market, ship breaking (HMS 80:20) prices are assessed at INR 15,200/MT (USD 224); down by INR 700/MT within a month.
Imported scrap offers in the month of June have plunged by USD 3-5/MT M-o-M in Indian market and USD 8-60/MT in global market. Besides, billet prices have also fallen steeply by INR 1,000/MT in Mumbai during the month.
Price scenario
During week 26, despite a number of sales being concluded, local markets remain static with end buyers unwilling to improve levels. Eid holidays are coming up in Bangladesh, Pakistan and Turkey between 1-9 Jul’16 and this will see a further slowing of activity, which, coupled with the ongoing summer and monsoon months. This will certainly see local activity grind to a halt.
However, offers in Turkey market moved up by USD 5/MT in a week and are assessed at USD 165/lt Ldt for general cargo and USD 170/lt Ldt for tanker.
Global ship breaking prices (in USD/ltldt) in week 26
| Country | General Cargo | W-o-W | Tanker | W-o-W | Market sentiments |
| India | 240 | 0 | 270 | 0 | Declining |
| Bangladesh | 250 | 0 | 280 | 0 | Declining |
| Pakistan | 245 | 0 | 275 | 0 | Declining |
| China | 150 | 0 | 160 | 0 | Stable |
| Turkey | 165 | +5 | 170 | 0 | Stable |
Offers in USD/MT
Source: SteelMint Research
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