Cheaper Chinese billet seeks buying interest over ship-plates; market at Alang witness fall in inquiries.
Trades at most active ship-breaking yards in Asia like India, Bangladesh and Pakistan remain muted this week. Though offers for ships coming for demolition remained unchanged, market witnessed a fall in number of inquiries and shift in interest.
Threats emerging from cheaper offers for Chinese plates to ship-breaking market is right now considered as the major cause for low inquiries and fall in demand.
Source informed, HR-plate is heard to have been offered at USD 355-360/MT, CFR South Asian countries. Billet from China was also heard to be offered at USD 335-340/MT, CFR South Asia.
Market participants posit, when fresh premium plates can be easily obtained at cheaper rates, why pay higher for used ship-cutting plates.
Apart from the above cause, the one month long festival Ramadan, along with monsoon, also added to the slowdown in trades, and has made buyers reluctant for new purchases. Also lack of clarification in increased taxes in Pakistan this Budget, has further made Pakistani buyers hesitant to take position.
Global Ship breaking Offers as on 2 July’15
| Particular/Delivery | Size/Grade | Prices in USD/MT | W-o-W Change |
| CNF Alang, India | General Cargo | 355 | – 5 |
| Tanker | 380 | 0 | |
| CNF Chittagong, Bangladesh | General Cargo | 355 | – 10 |
| Tanker | 380 | – 5 | |
| CNF Gadani, Pakistan | General Cargo | 350 | 0 |
| Tanker | 380 | 0 |
Source: SteelMint Research
Number of Ships to India Rise in June
Vessels coming to India for breaching witnessed a rise by around 35% in June’15 (M-o-M). These ships were booked couple of weeks back when there was a price-war in market just after Bangladesh and Pakistan Budget’15.
India breached around 23 vessels in June’15 and has recovered around 194,600 LDT of scrap (melting & re-rollable) out of those 23 vessels.
Prices at Alang Fall by up to INR 350/MT
Dull demand and price fall in billet by INR 500-1,000/MT M-o-M has hit plate prices. As a result domestic ship-breaking plates and melting scrap at Alang witnessed a fall of upto INR 350/MT this week.
Moreover, India is currently experiencing inactivity in imported scrap market, owing to no offers for imported scrap flowing to India on the back of unsettled pre-shipment inspection norms, which is now settled and is in effect from 1 Jul’15.
Alang Ship Breaking Prices as on 2 July’15
| Size/Grade | Prices in INR/MT |
D-o-D Change | W-o-W Change |
| 1 Inch | 24,550 | – 50 | -50 |
| 1-2 Kg | 21,250 | + 50 | -50 |
| 12-14mm | 24,100 | 0 | -50 |
| 15-18mm | 24,350 | – 50 | -50 |
| 19-22mm | 24,500 | 0 | 0 |
| 2-5 Kg | 23,600 | 0 | -100 |
| 5-10 Kg | 24,000 | 0 | -100 |
| 6-8mm | 22,900 | + 100 | -350 |
| 9-11mm | 23,700 | – 100 | -100 |
| HMS(80:20) | 19,550 | – 100 | -350 |
Source: SteelMint Research
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