Offers of Ships coming to India for demolition inched up by USD 20/MT W-o-W on improving domestic demand at Alang, & fall in number of Ships for breaching.
Indian Ship breakers who were recently absent in the global market owing to weak demand in domestic market and highly squeezing imported Steel offers from China & Russia, are now back in the market with handsome bookings at USD 370-390/MT levels.
Indian Rupee is also supporting the buying sentiments in its own way by resting at same levels of 62.25 against USD (almost stable; fall of INR 0.1/USD W-o-W).
Offers for Ship coming for demolition in Pakistan & Bangladesh also mounted up by around USD 15/MT this week. Current offers for general cargoes to Pakistan & Bangladesh are USD 375/MT & USD 380/MT respectively.
In last few trading weeks, ship suppliers across the globe temporarily routed their Ships to Pakistan & Bangladesh for demolition on account of better realizations rather than selling to India. Despite, India’s active participation this week, offers in these countries remain USD 5-10/MT higher than Indian market (USD 370/MT). Pakistan is expected to stay calm for a while in coming days as it had already booked decent number of Ships in last few trading sessions.
Strict norms by EU for Ship breaking may lead to a fall in number of Ships to India
European Union recently has proposed strict rules for demolishing old ships and according to the rules, the recyclers having safe ship breaking practices, would only be allowed to break the ship. EU’s move may affect the number of ships coming to India for breaching.
EU is expected to publish a list of approved yards of the world for demolition, next year. The obvious names in the list may include yards in America, China and the European Union.
While, throwing some light on South Asian Ship breakers, it was known that they do not hold good record in ship breaking facilities. This hazardous practices by them would definitely result to loss in number of Ships from EU. Hence, the prices of Ship breaking would continue to rise on the back of short supply.
Ship Breaking Prices at Alang up by INR 500/MT
Offers for Ship breaking Scrap at Alang improved by INR 500/MT W-o-W, with re-rollable Scrap (6-8mm) offered at around INR 24,900/MT, ex-yard. Prices dropped to INR 22,000/MT in the mid of the week, on the back of poor steel demand.
Ship Demolition Report of Mar’15
India demolished around 6 vessels more this month (Mar’15) as compared with 21 vessels in Feb’15. It breached total 27 vessels in Mar’15, by which it recovered around 201,580/ LT LDT than 194,556/ LT LDT in Feb’15.
Global Ship Scrap prices (in USD/MT) as on Week 14, 2015 ( 30 Mar – 5 Apr)
| Particular | Grade | Delivery | Price | W-O-W | M-O-M |
| Bangladesh Import | General Cargo | CNF Bangladesh, Chittagong | 380 | + 15 | + 30 |
| Tanker | CNF Bangladesh, Chittagong | 400 | + 15 | + 30 | |
| Pakistan Import | General Cargo | CNF Pakistan, Gadani | 375 | + 15 | + 15 |
| Tanker | CNF Pakistan, Gadani | 400 | + 20 | + 20 | |
| India Import | General Cargo | CNF India, Alang | 370 | + 20 | + 5 |
| Tanker | CNF India, Alang | 390 | + 20 | + 5 |
Source: SteelMint Research
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