Ship Breaking Price Continue To Rise, Week 31

Ship Breaking Market one of the most bullish on record as on Week 31 (29th July 2017)

The market for ship breaking is one of the major sources for steel making. Ship breaking market even this week continues it’s upwards momentum. The market saw more ships coming to be scrapped as well as the prices elevating.

Overall market saw the hike in prices as the local mills in major countries faced shortage of raw material. The shortage is said to be because of the ongoing monsoon in sub-continental countries.

Major Ship Breaking Market Report

India: Buyers in India this week continued to participate in the market with prices on higher side. Prices increase by USD 10/MT W-o-W reaching USD 345/MT for General Cargo and USD 355/MT for Tanker

In India, GMB (Gujarat Maritime Board) issued an ultimatum to those Alang yards that have yet to modernize and improve their facilities under the guidelines laid out in the Hong Kong Convention (HKC) for ship-recycling.

Bangladesh: The severe rains/monsoon period in Bangladesh has ensured limited supply of materials to the steel mills and subsequently, domestic prices have increased. Prices increase by USD 10/MT W-o-W reaching USD 355/MT for General Cargo and USD 385/MT for Tanker.

Pakistan: Pakistani market prices marching upward trend even with country facing political instability, shows that there is good demand for tonnage. Prices increase by USD 10/MT W-o-W reaching USD 350/MT for General Cargo and USD 380/MT for Tanker

China and Turkey: The prices remained more or less stable in China, posing little threat to the now rising sub-continent markets.  And in Turkey the prices went high by large margin.

Prices remaining same as USD 245/MT for General Cargo and USD 255/MT for Tanker in China and Turkey Prices increasing by USD 35/MT W-o-W to USD 285/MT for General Cargo and USD 295/MT for Tanker

According to SteelMint Analysis,

• The upward movement in the demolition market is because of the deals that have been done by the cash buyers and the recyclers. The current upward trajectory may continue as it is hard to tell that when it may halt.
• Shortage of local material to the mills in sub-continent due to never-ending monsoon is another reason of high prices and deals happening at these deals.
• The prices are increasing as the prime steel prices are also increasing which in return making the buyers to participate in ship breaking market.
• The increasing prices of billet in global market amid shortage of Chinese cargos is also influencing the prices.

Source : SteelMint
Prices in USD