Indian shipbreaking scrap prices fell on Tuesday as recyclers reduced offers. The daily Davis Indexes for HMS attachments and Melting declined by Rs250/mt ($3.34/mt) to Rs25,950/mt and Rs24,950/mt ex-Alang respectively.
Demand rolling scrap slowed since most mills have already stocked up inventories. The index for 4Ani declined by Rs100/mt to Rs27950/mt ex-Alang. The index for 12Ani rose by Rs150/mt to Rs31,100/mt ex-Alang with trades heard at the index price.
The index for 6Ani and 14Ani settled unchanged on Tuesday at Rs29,050/mt and Rs31,050/mt ex-Alang, respectively.
Demand for steel plates has been weighed down by a slowdown in construction activity due to heavy rain in the nearby cities. Indian Meteorological Department has issued a red alert for heavy rains in Gujarat till Thursday.
The index for 1kg plates declined by Rs100/mt to Rs26,250/mt ex-Alang. The daily Davis Index for 2kg plates increased by Rs50/mt to Rs29000/mt and the index for 5kg plates rose by Rs150/mt to Rs29600/mt ex-Alang, with transactions at the index price.
Mill owners are likely to wait for prices to fall before booking more ferrous scrap. They are expecting the PMAY (U) housing scheme to spur 15.8mn mt of construction steel demand at the minimum.