Shipbreaking scrap prices rose Monday amid steady demand from the mills in the North. The daily Davis Index for 4Ani Monday rose by Rs600/mt ($8.15/mt) to Rs26,850/mt ex-Alang from Friday. Ship scrap prices had declined in the last week as demand slowed.
Shortage of scrap helped shipbreakers increase their offers. The index for 6Ani rose by Rs750/mt to Rs28,000/mt ex-Alang, few transactions were heard at the index price.
The index for 8Ani rose by Rs500/mt to Rs29,500/mt ex-Alang, 10Ani and 12Ani rose by Rs500/mt each to Rs30,000/mt and Rs30,200/mt ex-Alang, respectively, with trades concluding at the index price.
Demand for steel plates in the local markets is slow as monsoon halted construction activity in the region, however, demand from the North has lifted the index for 1kg plates up by Rs500/mt to Rs25,850/mt , the index for 5kg plates rose by Rs750/mt to Rs28700/mt ex-Alang.
Alang is designated as a hub of green recycling in the Indian subcontinent, but tight supply of green recycling vessels has lead to a shortage of material at yards.
The daily Davis Index for HMS attachments and Melting rose by Rs500/mt each to Rs25,650/mt and 24,650/mt ex-Alang, respectively. Shipbreakers are expecting prices to increase in the near term as major mills are on the verge of increasing steel prices.