Indian Ship Breaking Demolition Hits Record High in Feb’16

February month registered the maximum number of ships arriving for demolition in last 3 years. Ship breaking demolition in Alang surged by 39% to 50 ships in regard to 36 ships in Jan’16.

With the imposition of minimum import price on steel products, no of ships for demolition increases as an expected hike in scrap and rolling price. In the month of Feb’16, number of ships coming for demolition has hit record high at 50 ships against 36 ships in Jan’16.

Analyzing the last 3 years data available with SteelMint, it can be inferred that about 30-32 ships were earlier arriving for demolition, which drastically fell to merely 4 ships in Oct’15. But now, it has showed a remarkable growth in Feb’16.

In addition, 9 ships are still waiting for breaching and one vessel is expected to arrive in coming days.

Indian ship breaking price sentiments

At an average, ship breaking (HMS 80:20) prices in Feb’16 fell merely by 1.19% to INR 15,850/MT against INR 16,050/MT in Jan’16. Currently, HMS 80:20 in domestic market is available at INR 15,800/MT; reporting no change in a week.

Global price scenario

Global ship breaking market reported price corrections during week 7 on account of subdued buying and Rupee depreciation to 68 per USD levels.

It has been heard that Bangladeshi buyers appeared to be stirring as well with a few reported sales of high ldt vessels heading for Chittagong yards.

Pakistani market as usual remained almost stable. Even though Chinese New Year is over, activity has not returned in the Far East with local demand for steel greatly subdued and prices on offer not able to compete those in the sub-continent.

Global ship breaking prices (in USD/ltldt) in week 7

Source: SteelMint Research