As an immediate reaction to Budget, buyers in Bangladesh quoted USD 10-15 higher than Indians for cargoes.
Budget announcement (on 4 June’15) in one of the most active Asian ship-breaking nation, Bangladesh, has come up with an important change of increase in import duty on billet by 40%. This has definitely hit import of billet in the nation. As a result, there is a rise in import of ships for breaking in Bangladesh. Prices of ships here went bullish post budget, upto USD 15/MT higher to Indian offers and slowly cooled and settled at a gap of USD 5/MT.
In fact, a deal of premium super-coated container ship slipped by an Indian buyer who quoted at USD 405/MT last week, when the same fetched higher bid of USD 415/MT by a Bangladeshi importer.
Currently, offers in Bangladesh are hovering at USD 360-365/MT for general cargoes/bulkers and USD 390-395/MT for tankers and containers.
Whereas, small bulkers in India are being offered at USD 350/MT, general cargoes at USD 355-360/MT, tankers around USD 365-370/MT and container ships at around USD 380-385/MT. Prices above USD 385/MT are only speculations; there is no price higher to it.
While in Pakistan, announcement of increase in sales tax by around 40% in the recent Budget has dragged down market to USD 40/MT post budget. Bulkers (around 10,000 MT) which were sold at USD 408-410/MT at the time of Budget, are now valued at not more than USD 365-370/MT. Presently, offers here are at USD 355/MT for general cargoes and USD 380-385/MT for tankers.
Global Ship Offers for Demolition as on 18 Jun’15
| Particulars | Size/Grade | Prices |
| CNF Alang, India | Small Bulker | 350-355 |
| General Cargo | 360 | |
| Tanker | 370-375 | |
| Container | 380-385 | |
| CNF Chittagong, Bangladesh | General Cargo | 365 |
| Tanker | 385-395 | |
| CNF Gadani, Pakistan | General Cargo | 350 |
| Tanker | 380 |
Source: SteelMint Research
Domestic Market in India
Prices of ship-breaking plates at Alang (India) witnessed a fall of around INR 200-400/MT W-o-W. Fall in billet and rebar prices in the beginning of the week, has pulled prices down during the rest of it.
Domestic Prices of Ship-Cutting as on 18 Jun’15
| Size/Grade | Prices | D-o-D | W-o-W | M-o-M |
| 1 Inch | 24,700 | 0 | -200 | 0 |
| 1-2 Kg | 21,450 | – 50 | -250 | -350 |
| 12-14mm | 24,150 | – 50 | -300 | -150 |
| 15-18mm | 24,500 | 0 | -200 | 0 |
| 19-22mm | 24,600 | 0 | -200 | 0 |
| 2-5 Kg | 23,800 | 0 | -200 | -100 |
| 5-10 Kg | 24,150 | – 50 | -400 | -50 |
| 6-8mm | 23,250 | – 100 | -400 | -150 |
| 9-11mm | 23,800 | – 50 | -350 | -200 |
| HMS(80:20) | 20,300 | 0 | -200 | -500 |
Source: SteelMint Research
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