Shipbreaking scrap price rose on Thursday as yards in Alang shut down, resulting in tight supply. The daily Davis Index for 8Ani rose by Rs500/mt ($6.72) to Rs40,400/mt ex-Alang and the index for 4Ani rose by Rs100/mt to Rs39,400/mt ex-Alang.
As there is shortage of oxygen cylinders for industrial use at the yards, gas cutting activities have stopped completely. Rolling scrap prices, especially those for 10Ani,12Ani and 14Ani remained unchanged as no production was reported since last seven days, with indexes flat at Rs39,800/mt, Rs40,300/mt, and Rs40,500/mt ex-Alang, respectively.
The government has threatened to cancel license of any yards in Alang found using oxygen for its dismantling purpose. All oxygen supplies have been diverted for medical use to tackle the COVID-19 crisis. Hence, production is expected to remain hit for some more days.
The daily Index for 1kg plates rose by Rs700/mt to Rs38,600/mt ex-Alang and the index for 5kg plates rose by Rs600/mt to Rs40,400/mt ex-Alang.
Mills were seen buying ferrous scrap on need basis as a few of them are now tapping the export market since domestic sales are low.
The daily Davis Index for HMS attachments and Melting rose by Rs600/mt each to Rs38,300/mt and Rs37,300/mt ex-Alang, respectively.
($1=Rs74.36)