Indian shipbreaking prices declined further on Friday amid subdued demand from re-rollers. The daily Davis Index for HMS attachments declined by Rs100/mt ($1.33/mt) to Rs21,750/mt ex-Alang.
Shipbreakers are challenged by weak demand as re-rolling mills operated at minimum capacity. Prices have dropped by $120-130/mt in the past three months. Out of 120 yards, only 75 are operational amid a shortage of skilled workforce, which is also adding to production losses.
The daily Davis index for 14Ani declined by Rs100/mt to Rs27,550/mt, the index for 2 kg plates declined by Rs200/mt to Rs22,750/mt ex-Alang.
Low trades were reported on Friday, the index for 4Ani declined by Rs58/mt to Rs24,792/mt with transaction reported at Rs24,800/mt ex-Alang. The daily Davis Index for Melting rose by Rs50/mt to Rs20,900/mt ex-Alang. Trades were heard at the index price.
Shipowners who engage in eco-friendly recycling and are in compliance with global green standards are sending ships to Indian yards. Rest of the vessels are heading to Bangladesh and Pakistan as yards there are offering $20/mt more for vessels, said a major ship breaker.
Twelve ships are waiting to be dismantled at Alang. Yards face a shortage of skilled labour to dismantle these vessels.
The index for 6Ani,8Ani and 10Ani remained flat at Rs25,950/mt, Rs26,850/mt and Rs27,250/mt ex-Alang, respectively.