Alang Bulk ship recycling market seems to pick up some interest from cash buyers amid appreciation of Rupee against US dollar. Indian currency, which was trading to the level of 63.6 on 7 Jan’15, has reached to 62.09 levels against USD. Prices have been corrected by around USD 15/MT since the currency appreciate to 63.6 levels per USD.
Industry participants highlighted that prices have bottomed out and may see some uptick from here. Also, improved buying from Bangladesh and Pakistan will support prices to Indian market as well.
Dry ship prices are assessed at around USD 400/MT and Box ship prices at USD 420-425/MT, CIF India.
Alang is the largest ship recycling yard in Asia, which handled about 305 ships in 2013 and about 286 ships in 2014. Alang is also a major source for Scrap generation in India. However since Sep’14, number of ship to break has reduced to about 16 ships from average of 28 ships during Jan’14-Aug’14.
Indian West Domestic Market weaken by INR 500/MT
In domestic market, steel prices are quite volatile. On one hand, improving supply of Iron ore and falling Sponge iron prices are putting pressure. Whereas, supply of Scrap has provided some support to prices. In most of the markets, prices remain unchanged or marginally down by INR 200/MT. Moreover, bulk shipment import and low production in Gujarat have reduced Scrap prices by INR 500/MT.
Scrap Prices in Alang as on 13 Jan’15
| Size | Grade | Price | W-o-W | M-o-M |
| 4 Ane (6-8 mm) | Ship Breaking | 25,500 | 0 | – 600 |
| 6 Ane (9-11 mm) | Ship Breaking | 26,100 | 0 | – 600 |
| 8 Ane (12-14 mm) | Ship Breaking | 26,500 | 0 | – 600 |
| 10 Ane (15-18 mm) | Ship Breaking | 26,900 | + 100 | – 500 |
| 12 Ane (19-22 mm) | Ship Breaking | 27,000 | 0 | – 500 |
| 1 Inch | Ship Breaking | 27,100 | 0 | – 500 |
| 1-2 Kg | Ship Breaking | 23,700 | – 100 | – 1,300 |
| 2-5 Kg | Ship Breaking | 26,000 | 0 | – 700 |
| 5-10 Kg | Ship Breaking | 26,500 | 0 | – 700 |
| HMS(80:20) | Ship Breaking | 22,600 | – 200 | – 1,200 |
Basic prices in INR/MT
Excise duty @12.36%; VAT as applicable
Source: SteelMint Research
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