Indian shipbreaking scrap prices continued to lose steam amid declining bids from the rolling mills in the North as well as the local Gujarat market. TMT prices also declined by Rs400-500/mt in the western market, pulling down raw material prices.
The daily Davis Index for 4Ani declined by Rs300/mt ($4.13/mt) to Rs32,000/mt ex-Alang and the index for 6Ani declined by Rs200/mt to Rs32,600/mt ex-Alang.
Mills are still preferring to buy raw material only if need arises. Looking at the demand from the end-users, yard owners in Alang reduced their offers to attract bids.
The indexes for 12Ani and 14Ani declined by Rs100/mt each to Rs35,700/mt and Rs35,900/mt ex-Alang, respectively and market participants expect the prices to remain under pressure till Holi festival (March 29).
Demand for shipbreaking plates also remained subdued as construction activities have slowed down due to increasing COVID-19 cases in the neighboring states. The daily Davis Index for 1kg plates declined by Rs200/mt to Rs31500/mt ex-Alang and the index for 2kg plates declined by Rs100/mt to Rs32,400/mt ex-Alang.
Melting and HMS attachments prices also followed a siimilar trend, with the index for HMS attachments and Melting declining by Rs200/mt each to Rs31,300/mt and Rs30,300/mt ex-Alang, respectively.
($1=Rs72.60)