Alang -one of the largest ships breaking yard in the world located in Gujarat- Western India, has reported sharp fall in ship breaking imports to about 0.10 LDT (light displacement tonnage) in Jan’19 as against 0.16 LDT in Dec’18, fall by 37.5% M-o-M, as per the customs data.
As per data retained by SteelMint, import volume has registered 20 months low in Jan’19 as the previous low was recorded in May’17 at around 0.07 LDT.
It seems that imports of scrapped ships have been narrowed down in line with regular bookings of containerized import scrap (HMS 80-20) by medium & small scale mills, as per sources.
Meanwhile the local finish steel demand is being notified more or less on average basis particularly in Western region (Gujarat) and finished steel (TMT) price range have been shrink by around 1% in Jan’19 (M-o-M) basis.
Another factor can be considered as currency fluctuations in INR against USD as it has been depreciated by around 2% in Jan’19 (M-o-M) basis and 21 ships were imported for recycling during the month of Jan’19.
Further, on yearly comparison, the Ship Breaking volumes have declined by 74% to 0.10 LDT in Jan’19 against to 0.39 LDT in Jan’18.
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