India: Ship Breaking Increased By 16% in Jan’17

The number of ships arriving for demolition in Alang (Gujarat) have increased by 16%
M-o-M.

Total 29 ships have arrived to Alang in Jan’17, compared to 25 ships in the month of Dec’16 and 17 ships in Nov’16. In Jan’17 total 302,812 LDT had arrived, while the average monthly tonnage in CY16 was 2,85,000 LDT to total of CY 2016 was 34,10,905 LDT.

There are still 6 ships waiting for breaching for this month and 3 vessels are expected to arrive.

Due to fall in ferrous scrap prices in global market that has plummed by USD 58/MT W-o-W it also influence Ship breaking prices in domestic India market. Prices fall in line by INR 100-500/MT M-o-M, currently HMS 80:20 and rerolling scrap are hovering in the range of INR 18,300-22,700/MT Ex works Bhavnagar (Gujarat).

Similarly, MS billet prices in domestic market also declined by INR 1,200-1,700/MT M-o-M and are at the range of INR 22,800-26,900/MT ex works.

Global Ship Breaking Price Sentiments:

As per custom report, ship breaking trade in India is unchanged for both general cargo and tanker. India was the active market of the week with firm interest. Bangladesh and Pakistan also remained stable.

In Pakistan port the ban on steel cutting is continue to impose after the tragic accidents from past couple of months. The local buyers prefer to wait until situation clears prior to book any new vessel for demolishing. It’s expected that situation may get normalize within this month.

In India, prices are assessed at USD 315/lt Ldt for general cargo and USD 330/lt Ldt for tanker. Bangladesh buying also remain cautious.

Global Ship Breaking Prices (in USD/lt Ldt) in Week 05:

Source: Steelmint Research