Alang ship breakers hit by drop in steel scrap prices, rupee depreciatio: IFA Global report

MUMBAI: One of the world’s largest ship breaking yard Alang, situated in Gujarat, has been hit by recent meltdown in steel scrap prices coupled with a rupee value against the dollar.

The 12-month period saw domestic steel demand muted, resulting in a 23 per cent decline in average realization on scrap steel (a key raw material in secondary steel making) from Rs 26,504 per tonne in October 2014 to Rs 20,398 in September 2015. With 9 per cent depreciation in rupee, the industry in the last past three fiscals incurred about Rs 1,200-crore loss in foreign exchange, IFA Global said in its report.

The shipyard at Alang recycles approximately half of all ships salvaged around the world and is considered as the world's largest graveyard of ships.