Offers for ship demolition at active yards in India, Bangladesh & Pakistan declined by USD 10-15/MT in a week’s time.
Ship breaking prices in India has declined by USD 5-10/MT W-o-W owing to fall in billet prices and bearish domestic sentiments. Moreover, cheap Chinese offers for billet & plate at around USD 320/MT and USD 340/MT respectively, to India has increased the burden on ship breaking industry.
Similarly, ship-breaking yard in Bangladesh remained passive as they were already filled with ships purchased before the budget. In addition, Pakistan is experiencing low trade after the increase in domestic taxes in FY16 budget.
Global Ship breaking Offers as on Week 28
| Particular/Delivery | Size/Grade | Prices | W-o-W Change | 2 Weeks | 1 Month |
| CNF Alang, India | General Cargo | $345 | – 10 | $360 | $360 |
| Tanker | $375 | – 5 | $380 | $380 | |
| CNF Chittagong, Bangladesh | General Cargo | $340 | – 15 | $365 | $360 |
| Tanker | $370 | – 10 | $385 | $380 | |
| CNF Gadani, Pakistan | General Cargo | $345 | – 5 | $350 | $350 |
| Tanker | $375 | – 5 | $380 | $380 |
Source: SteelMint Research
Ship Demolition Report
India demolished around 8 vessels in July’15 and recovered around 69,000 LDT of melting and re-rollable scrap. 3 vessels (2 general & 1 fishing cargo) are waiting to be demolish this week, which would yield around 19,200 LDT.
Ship Plates Prices Declined by Around INR 1,000/MT
Indian ship-plates and melting scrap at Alang has witnessed a sharp fall of INR 500-1,000/MT W-o-W, as a result of a fall in billet prices by INR 500-700/MT W-o-W in major markets.
Moreover, imported scrap offers to India have also witnessed a fall of around USD 20/MT after announcement of PSIC norms for scrap imports.
Ship-breaking Offers at Alang, as on 11 July ’15
| Size/Grade | Prices | D-o-D Change | W-o-W Change | Fortnight Change | M-o-M Change |
| 1 Inch | 23,900 | -200 | -700 | -500 | -900 |
| 1-2 Kg | 20,850 | -150 | -450 | -350 | -750 |
| 12-14mm | 23,300 | -250 | -850 | -600 | -1,100 |
| 15-18mm | 23,700 | -200 | -750 | -500 | -900 |
| 19-22mm | 23,800 | -200 | -750 | -500 | -900 |
| 2-5 Kg | 22,900 | -200 | -650 | -600 | -1,100 |
| 5-10 Kg | 23,300 | -200 | -700 | -550 | -1,050 |
| 6-8mm | 22,000 | -200 | -900 | -900 | -1,600 |
| 9-11mm | 22,900 | -200 | -800 | -700 | -1,100 |
| HMS(80:20) | 18,700 | -150 | -800 | -1,050 | -1,700 |
Ex yard prices in INR/MT
Source: SteelMint Research
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