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.