After remaining flat last week, shipbreaking prices rose on Monday amid rise in demand from mills in Mandi Gobindgarh as well as those in Gujarat. The index for HMS attachments and Melting rose by Rs550/mt($7.50/mt) each to Rs25,100/mt and Rs24,100/mt ex-Alang, respectively.
Shipbreakers have increased offers as production — which had slowed down due to shortage of oxygen — is now back on track though mills are paying more for the oxygen cylinders. The index for 4Ani rose by Rs600/mt to Rs26,200/mt ex-Alang. Few transactions were reported at the index price.
The daily Davis Indexes for 6Ani and 8Ani rose by Rs750/mt each the Rs27,200/mt and Rs28,400/mt ex-Alang, respectively.
Demand from the automobile and construction segments are slowly picking-up, boosting the demand for ship plates. The daily Davis indexes for 1kg plates rose by Rs550/mt to Rs25,200/mt ex-Alang and for 2kg plates rose by Rs350/mt to Rs26,750/mt ex-Alang.
A few transactions were heard for 14Ani at the index price. The index rose by Rs500/mt to Rs29,100/mt ex-Alang.
Normal operation in Sosiya (a ship recycling region near Alang) was interrupted by a short strike by local workers.
Shipbreakers are optimistic looking at Monday’s trading and are expecting demand for finished steel to increase in near term.
($1=Rs73.31)