Indian Ship Breaking Demolition Records High in Jan’16

Number of ships arriving for demolition to Alang has recorded highest figures in Jan’16; reporting surge of 89% to 36 ships in regard to 19 ships in Dec’15.

The month of Jan’16 was comparatively better off in terms of ships coming for demolition. At an average, earlier about 30-32 ships were arriving for demolition, which drastically fell to merely 4 ships in Oct’15.

But in Jan’16, the number of ships increased widely by 89% to 36 ships against 19 ships in Dec’15. Alongside, 11 ships are still waiting for breaching and 7 vessels are expected to arrive in coming days.

The surge in ships (for breaking) is supported by higher Indian price compare to global ship breaking offers. In India steel prices also surged post the announcement of MIP imposition by Indian government during Dec’15. Global & domestic ship breaking price scenario

Global ship breaking market remained stable this week with no price fluctuations. In global market, general cargo CNF offers to India, Bangaldesh and Pakistan are currently assessed at the same level of USD 260/MT. While, tanker CNF offers to these countries are reported at USD 290/MT.

On the flip side, ship breaking prices in domestic market are under pressure and slumped by INR 1,000-1,400/MT this week. Current offers in Alang are hovering in the range of 15,050-19,000/MT for all grades amid decline in steel product prices and sluggish demand.

Global ship breaking prices (in USD/ltldt) in week 4

Source: SteelMint Research