Shipbreaking scrap prices in Alang declined for the second consecutive day on low demand from Mandi Gobindgarh. The daily Davis Index for Melting and HMS attachments declined by Rs900/mt ($12.02/mt) to Rs24,050/mt and Rs25,050/mt ex-Alang, respectively.
Shipbreakers have lowered their offers to clear the inventories. The daily Davis Index for 6Ani declined by Rs500/mt to Rs28,550/mt ex-Alang. The index for 8Ani declined by Rs1,350/mt to Rs29,000/mt ex-Alang.
Labourers are also returning to Alang after the lockdown, which will help boost the dismantling process.
Few trades were heard for 4Ani at the index price which declined by Rs250/mt to Rs27,700/mt ex-Alang. The daily Davis index for 14Ani declined by Rs600/mt to Rs30,450/mt ex-Alang.
Demand for steel plates has slowed down after prices rallied these last few weeks, but shipbreakers are still positive and believe that the market took a breather. Major steelmakers are also on the verge of increasing its prices by Rs500/mt in near term.
The index for 1kg plates declined by Rs1,000/mt to Rs25,250/mt ex-Alang while 5kg plates declined by Rs600/mt to Rs29,000/mt ex-Alang.
As per a shipbreaker, the market will remain calm for a while as monsoon has slowed down the logistics in the nearby cities.