Rajkot: Alang, the final goal for retirees, see less traffic over the past few months starting from February.
While this sector is bullish during the global peak, recent concessions due to price differences between India and neighboring countries.
The cost of high transportation and container costs decrease the owner of the ship to scrap the old boat in Alang as Pakistan and Bangladesh pay a higher price than India.
Ship demolition hub generally gets 25 ships every month because of demolition which falls to around 12 to 15 between February and May.
Alang witnessed a large inflow of old boats during the Covid peak period as the owner of the retirement for the old boat for cash.
But the picture changes now.
In addition to the crisis of containers, shipping delivery has increased various throughout the world with the economy of taking.
“Some offshore vessels, passenger ships and those who need a Breaker of the Hong Kong Convention certified vessel only come here,” Haresh Parmar, the secretary of the Indian Association Industry Recycling, to Ti.
Nearly 50 percent of the total units of 120 are idle because there are no ships to dismantle while those who work have long stock, Parmar said.
During the second wave peak, this sector must remain closed for around 50 days without the availability of oxygen because the government has transferred all industrial oxygen to use medical needs at that time.
According to ship breakers, ship prices have increased by 50 percent in the past year and with Pakistan and Bangladesh offers more prices, they grab the Indian business.
The reason behind this is that these two neighboring countries use 60 percent of recycled steel in construction and various other industries and the remaining steel they export.
The steel price in the international market is very high over the past few months and this is why these countries attract more ships.
While in India, only three percent of recycled steel is used in the construction industry.
Rohit Agrawal, a consultant in Alang, said, “Breakers of Indian ships pay the highest price and have reached a saturation point.
Bangladesh and Pakistan pay $ 15 to 20 more per ton.
India has various steel sources, while Bangladesh really depends on the cycle Reset ships and steel imports.
They don’t have Mines like India and hence, they pay more prices for demolition ships.
“” This sector also bears losses during temporary locking still closed for almost two months during the second wave.
GMB has increased costs three times After some mandatory changes that we make in the plot consider the problem of safety and environment.
This is a major burden on the labor-intensive sector at this time, “said Parmar, adding that he experienced slack began due to difficult competition.
“We demand that the Gujarat Maritime Council (GMB) must remove the fixed accusations for the pressed period.” Parmar added.