Indian Ship Breaking Demolition Uptick by 5% in Sep’16

The number of ships arriving for demolition in Alang (Gujurat) rose by 5% to 22 ships in Sep’16 in contrast to 21 ships in Aug’16.

The number of ships arriving to Alang increased in Sep’16 by 5% due to rise in steel prices in domestic market.

Total 22 ships have arrived to Alang, which was 21 ships in the month of Aug’16 and 15 ships in July’16. Total 2,73,624 LDT arrived in Sep’16, while the total tonnage this year till now is 26,82,370 LDT. In 2015, it was 17,61,520 LDT.

There are still 3 ships in this month waiting for breaching, but no vessels are expected to arrive.

In addition, ship breaking prices in Indian market increased sharply by INR 200-500/MT M-o-M and currently hovering in the range of INR 15,300-18,600/MT.

Meanwhile, imported scrap offers in the month of September also declined by USD 2-6/MT M-o-M. Similarly, billet prices boosted by INR 2,000/MT in Mumbai during the month.

Global Ship Breaking Price Sentiments

As per custom report, ship breaking trade in India remained stagnant in week 40. However, Pakistan reported sharp price correction of USD 20/MT.

Besides, Bangladesh prices have also weakened proportionately higher over subdued demand. Buyers also heard changing their mind on pricing for a particular vessel.

In India, prices are assessed at USD 275/lt Ldt for general cargo and USD 305/lt Ldt for tanker.

Global ship breaking prices (in USD/ltldt) in week 41