Indian shipbreaking scrap prices declined on Thursday amid subdued demand from rolling mills. The demand for finished steel remained low in the domestic market. The daily Davis Index for 10Ani declined by Rs225/mt ($3/mt) to Rs27,250/mt ex-Alang.
Shipbreakers have reduced their offers to stimulate sales as well as to clear the piled-up inventory as peak monsoon season slows down the production process. Moreover, most mills are likely to undergo planned maintenance which would further slowdown trades in near term.
The indexes for 6Ani declined by Rs242/mt to Rs25,950/mt, 8Ani declined by Rs150/mt to Rs26,850/mt, 4Ani declined by Rs42/mt to Rs24850/mt ex -Alang.
The daily Davis Index for 0.5kg plates and 1kg plates remained flat at Rs22,250/mt and Rs22,150/mt respectively.
There is minimal demand for HMS attachments and Melting scrap from the mills in Gujarat, Rajasthan and Uttar Pradesh, the index for HMS attachments rose by Rs100/mt to Rs21850/mt and the index for Melting rose by Rs100/mt to Rs20,850/mt ex-Alang.
Ship bookings have slowed down as yards are unable to accommodate more ships. Shortage of skilled gas cutters continued to delay the dismantling process at Alang.
A vessel named Pacific pearl (General Cargo) with a capacity of 11,054ldt of Japan origin is expected to arrive shortly at Alang port and approximately 7 vessels are waiting to be dismantled.