Scrap prices in Alang (Gujarat), Asia’s largest ship breaking hub, witnessed an upside of INR 500-600/MT this week. Prices have moved up sharply owing to lesser number of ships coming for breaking.
Industry participants claimed that number of ships coming for demolition have fallen from an average of 30-31 to about 15-16 in last few months, which has resulted in lower Scrap generation . However, in the month of December, an increment in number of ships for breaking will be noticed, which may put pressure on prices.
Participants also believe higher imported Scrap offers have lent support to the price increase.
“There is some demand for domestic Scrap as imported offers have moved up by USD 10-15/MT during December (Christmas holidays and winters restrict Scrap exports from Europe/US/South Africa). Also, falling Rupee against the USD is a reason for rise in domestic Scrap prices”, said a Scrap trader based in Alang.
Scrap prices in other parts of the country remain more or less stable.
Current Scrap Offers as on 11 Dec, 2014
| Particular | Grade | Price | W-o-W | M-o-M |
| Alang | HMS(80:20) | 23,650 | + 650 | + 150 |
| Mumbai | HMS(80:20) | 22,200 | 0 | – 1,000 |
| Ahmedabad | HMS(80:20) | 24,250 | + 650 | + 250 |
| Hyderabad | HMS(80:20) | 21,500 | 0 | – 2,000 |
| Chennai | HMS(80:20) | 21,150 | 0 | – 250 |
Prices in INR/MT excluding all taxes
Source: SteelMint Research
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