Ship cutting prices in Alang (Gujarat) up by INR 700-1,400/MT W-o-W on the back of lower number of ships coming for demolition.
Alang Ship breakers demolished around 27 Ships in March 2015, i.e 6 Ships more than Feb’15. Around 286 ships were demolished in 2014 and around 67 ships have been demolished in first quarter of Year 2015.
“Plates obtained from ship cutting are a major source of raw material for small rolling mills in Gujarat, Punjab and Rajasthan. Rise in plate prices will certainly impact Indian domestic steel prices” said a trader based in Alang.
It may be noted that around 3.3 MnT Steel was generated through Ship cutting Scrap in form of plates or melting Scrap in 2014.
Indian Scrap prices (in INR/MT) as on date 03-Apr-2015
| Particular | Size | Price (Basic) | W-O-W | M-O-M |
| Bhavnagar Ship-Breaking | 6-8mm | 25,400 | 1,200 | 1,400 |
| 9-11mm | 25,900 | 700 | 1,000 | |
| 12-14mm | 26,400 | 900 | 1,000 | |
| 15-18mm | 26,600 | 800 | 700 | |
| 19-22mm | 26,700 | 800 | 700 | |
| 1 Inch | 26,800 | 800 | 700 | |
| 1-2 Kg | 24,700 | 1,200 | 1,700 | |
| 2-5 Kg | 25,600 | 700 | 800 | |
| 5-10 Kg | 26,100 | 800 | 700 | |
| HMS(80:20) | 23,150 | 1,350 | 1,050 |
Daily Assessment
Excise duty @12.50%; VAT as applicable
# Including All Taxes
Ship breaking prices in Asian countries are likely to rise on anticipation that European Union may ban scrapping ships in India, Pakistan and Bangladesh.According to a shipping report, around 641 tankers, cruise liners and other old vessels were breached in these countries, last year. Ship breaking prices in Asian countries moved up by USD 20/LT LDT in last one week.
European Union recently proposed strict rules for demolishing old ships. According to the rules, only recyclers those who practice safe ship breaking, would be allowed to break the ship. EU’s move may affect the number of ships coming to South Asia, including India.
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