Indian Ship Breaking Demolition Falls by 12% in Apr’16

The number of ships arriving for demolition in Alang (Gujurat) fell by about 12% to 30 ships in Apr’16 in contrast to 34 ships in Mar’16.

In Apr’16, total 30 ships have arrived to Alang, which was 34 ships in the month of Mar’16 and 15 ships in Apr’15. Due to beginning of new fiscal, ships in month of Apr’16 always remain at average to 30 levels. There are still 5 ships in this month waiting for breaching and one vessel are expected to arrive.

Imported scrap offers in the month of April have surged by USD 50-60/MT M-o-M (Shredded of US origin by USD 49/MT; HMS 80:20 by USD 60/MT). Besides, billet prices have also increased by INR 700/MT in Mumbai.

Currently in Indian domestic market, ship breaking prices are hovering in the range of INR 17,400-19,800/MT (USD 260-300/MT), down by INR 200-600/MT within a week.

Price scenario

During week 16, buyers in sub-continent market were in wait-and-watch mode. With coming monsoon season along with governmental budgets looming over Pakistani and Bangladeshi markets, buying interest was quite, however, prices remained more-or-less steady amid improving local sentiments.

While in China and Turkey market, offers boosted up by USD 15-25/MT in a week and were assessed at USD 160/lt Ldt and USD 200/lt Ldt respectively for general cargo.

Global ship breaking prices (in USD/ltldt) in week 16

 Source: SteelMint Research