Shipbreaking scrap prices on Thursday dropped on gradual decline in demand from the local mills due to fear of heavy rains disrupting logistics. The daily Davis Index for HMS attachments and Melting declined by Rs200/mt ($2.70/mt) each to Rs25,550/mt and Rs24,550/mt ex-Alang, respectively.
Mills have scaled back buying due to existing stockpiled inventories and consequently, shipbreakers reduced their offers to use up inventories.
The index for 6Ani declined by Rs50/mt to Rs28,100/mt ex-Alang and few trades were reported at the index price. The index for 8Ani declined by Rs150/mt to Rs29,350/mt on Thursday ex-Alang.
Transactions were heard at index price for 10Ani which declined by Rs100/mt to Rs29,900/mt ex-Alang.
Demand for plates slowed down on Thursday as heavy rains have put brakes on construction activity in nearby cities. The daily Davis Indexes for 1kg plates declined by Rs300/mt to Rs25,850/mt ex-Alang and 2kg plates declined by Rs150/mt to Rs27,500/mt ex-Alang.
The index for 14Ani settled flat at Rs30,150/mt ex-Alang. Shipbreakers are expecting prices to improve in near term once monsoon subsides and demand from the infrastructure sector picks up.
($1=Rs73.90)