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| Alang ship breakers facing losses due to steel prices downturn - 25 Sep, 2008 | ||
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Exim News Service reported that more ships are coming to Alang during the last 3 to 4 months for breaking the fall in steel prices and the global monetary situation have affected operations. Those ships which were bought at a higher price and those which are being demolished may prove costly for the yard owners because of the fall in their prices. With the weakening of the market, there has been a price reduction of USD 100 plus. A source said that most of the deals which were struck a month ago are now being renegotiated. He added that Banks which fund most of the deals may also feel the adverse impact a yard owner averred. According to another leading player, the fall in prices has come during the last 1 month due to reduction in the steel price and ship price and the depreciation of the rupee against the dollar. It is estimated that the yards in Alang have cumulatively lost more than INR 200 crore. As per report, Alang had demolished 11 ships in June, July saw the breaking of 20 ships and August 21 ships which yielded 1,05,917 tonnes. | ||
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