Bulk ship breaking prices in the Indian market have increased by USD 10-15/MT W-o-W. This is owing to an increase in steel prices domestically coupled with an anticipation that INR may depreciate further after the Budget session.
Current prices for general Cargo ship are hovering at USD 350/ldt against USD 340-345/ldt, CIF Alang, Gujarat. Similarly, Box ship cargo’s prices are assessed at USD 380-385/ldt against USD 370/ldt in last week, CIF Alang.
Indian Steel Prices up by INR 1,000-1,500/MT W-o-W basis.
Indian steel prices rose sharply by INR 1,000-1,500/MT (USD 16-25/MT ) owing to the seasonal demand before the Indian festival, Holi. It is anticipated that government may increase duty on import of steel in up coming budget.
Indian Billet prices are trading at INR 26,500/MT to INR 30,200/MT (USD 425-490/MT ) on Ex- Works basis.
Importers expect INR to depreciate against USD
Indian importers expect INR to depreciate against USD after budget, as the government has plans to ease import of gold. INR is trading at 62.20/ USD.
Global Ship Breaking Price as on 16 Feb’15
| S.N | Country | General Cargo | Tanker | ||||
| As on 23 Feb’15 | As on 16 Feb’15 | Change | As on 23 Feb’15 | As on 16 Feb’15 | Change | ||
| 1 | Pakistan | 360 | 350 | +10 | 380 | 370 | +10 |
| 2 | India | 360 | 345 | +15 | 385 | 370 | +15 |
| 3 | Bangladesh | 350 | 350 | 0 | 370 | 370 | 0 |
Alang is one of the largest ship breaking yard in the world and also, a major source of Scrap for steel units in India. On an average, monthly 30 to 35 ships are docked at Alang for breaking, which has now come down to about 17 to 18 ships from the past few months.
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