Indian Ship Breaking Demolition Upsurge by 40% in Aug’16

The number of ships arriving for demolition in Alang (Gujurat) had been decreasing since Mar’16. However in Aug’16, it rose by 40% to 21 ships in Aug’16 in contrast to 15 ships in Jul’16.

Since Mar’16, number of ships arriving to Alang had been decreasing continuously amid weak domestic sentiments and subdued demand. However in Aug’16, a rise of 40% has been reported.

Total 21 ships have arrived to Alang, which was 15 ships in the month of Jul’16 and 18 ships in Jun’16. Total 228,798 LDT arrived in Aug’16, while the total tonnage this year till now is 2,321,250 LDT. In 2015, it was 1,761,520 LDT.

There are still 3 ships in this month waiting for breaching and also another 3 vessels are expected to arrive.

In addition, ship breaking prices in Indian market increased sharply by INR 600-1,200/MT M-o-M and currently hovering in the range of INR 16,600-19,300/MT.

Meanwhile, imported scrap offers in the month of August also surged by USD 5-20/MT M-o-M. Similarly, billet prices boosted by INR 1,150/MT in Mumbai during the month.

Global ship breaking price sentiments

In week 35, India remains stagnant and pragmatic. However, Pakistan continues to remain cautious despite demand clearly improving over the recent few weeks.

Bangladesh therefore is the one market that is presently leading international prices, yet demand there remains specific and volatile with buyers often changing their mind on pricing particular vessels, from one moment to the next.

In Indian global market, prices were assessed at USD 255/lt Ldt for general cargo and USD 285/lt Ldt for tanker.

Global ship breaking prices (in USD/ltldt) in week 35