Rising COVID-19 cases could hamper shipbreaking activity in Alang as the oxygen supplies are being diverted to the local hospitals, which could create a shortfall at recycling yards where it is used. A possible slowdown of cutting in the near term is expected.
Out of the total gas supply, 70pc will be reserved for the medical purpose and rest 30pc will be allocated for the industrial usage.
A few shipbreakers said there is already a shortage of tonnages at the yards in Alang and the supply shortage of oxygen won’t affect the ongoing dismantling activity much.
Shipbreaking tonnage at Alang fell to 45,918ldt, down 50pc from February this year and 40pc from March 2020.
Scrap prices in Alang were already on a rise since February as major tonnages were bought by Pakistan and Bangladesh and very few ships were beached at Alang.
Melting scrap prices rose by 9.6pc since March till date to Rs38,800/mt ex-Alang and the 2kg ship plate prices rose by 5.8pc to Rs32,800/mt ex-Alang.
Night curfew has been imposed in Bhavnagar district from 8pm to 6am to control the rising number of COVID-19 cases.