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

Prices of shipbreaking melting scrap declined on Tuesday amid low demand from the rolling mills. Steelmakers refrained from buying raw materials as demand from the end-users has not picked-up. The daily Davis Index for 4Ani and 6Ani declined by Rs300/mt ($4.07/mt) each to Rs26,200/mt and Rs27,200/mt ex-Alang, respectively. 

 

Few trades were heard for 12Ani at the index price. The daily Davis Index for 12Ani declined by Rs450/mt to Rs28,900/mt ex-Alang. The index for 14Ani declined by Rs350/mt to Rs29,000/mt ex-Alang.

 

Demand for steel plates has also declined amid shortage of oxygen supply in the mill. The index for 1kg plates declined by Rs200/mt to Rs25,150/mt ex-Alang and a few trades were reported at this price. The indexes for 2kg plates declined by Rs300/mt to Rs27,200/mt ex-Alang and for 5kg plates declined by Rs400/mt to Rs28,200/mt ex-Alang

Shipbreakers reduced their offers on Tuesday to clear the stockpiled inventories. The daily Davis Index for HMS attachments and Melting declined by Rs250/mt each to Rs25,000/mt and Rs24,000/mt ex-Alang, respectively.

 

As per the market participants, shipbreaking scrap prices are expected to remain under pressure till the oxygen supply gets back on track, however, the rise in COVID-19 cases could hamper that. 

 

($1=Rs73.56)

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