Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian shipbreaking scrap prices on Friday were flat amid thin trades. Labour shortage continues to impede operations at shipbreaking yards leading shortage of material to sell.


The daily Davis Index for Melting and HMS attachment settled at Rs20,950/mt($278.5/mt) and Rs21,950/mt ex-works Alang, respectively.


There was demand for 4Ani in the local markets as mills resumed production. The daily Davis Index for 4Ani rose by Rs200/mt to Rs25,150/mt ex-works Alang. 


Most of the ships are being diverted to Pakistan and Bangladesh because India is facing labour issues and dismantling is taking longer. Pakistan and Bangladesh have a 44pc higher dismantling rate than India. Demand from the end users in these regions is also higher. 


Shipbreakers are focused on selling off their inventories to ensure cashflow during monsoon, said a shipbreaker.


The daily Davis Indexes for 14Ani ,10Ani and 1kg plates settled flat at Rs27,950/mt, Rs27,750/mt and Rs22,250/mt ex-works Alang, respectively. The index for 5kg declined by Rs100/mt to Rs26,350/mt ex-Alang on low trades.


Vessels have arrived at ports and are yet to be dismantled but an increase in number of COVID-19 cases across India is raising a concern for mill owners and shipbreakers. Shipbreaking scrap prices are expected to remain low in the near term. 


($1= Rs75.22)


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