Shipbreaking scrap prices after inclining for two consecutive days took a breather on Wednesday amid tepid demand from the rolling mills. The daily Davis Index for HMS attachments and Melting declined by Rs250/mt ($3.40/mt) to Rs25,450/mt and Rs24,450/mt ex-Alang respectively.
Demand for rolling scrap also showed similar trend as shipbreakers reduced their offers to clear daily inventories. The daily Davis Index for 4Ani declined by Rs150/mt to Rs26,000/mt ex-Alang, few transactions were reported at the index price.
The index for 6Ani and 8Ani declined by Rs250/mt each to Rs27,150/mt and Rs28,250/mt ex-Alang, respectively.
Mills have already stocked raw material for their daily requirements, as per a mill owner in the North, bookings for raw material is carried out on a staggered manner with an eye on how end-user demand is returning.
The index for 12Ani and 14Ani declined by Rs100/mt each to Rs29,000/mt and Rs29,100/mt ex-Alang, respectively.
Demand for steel plates also declined on Wednesday amid slowdown in construction projects due to increasing number of COVID-19 cases. The daily Davis Index for 1kg plates declined by Rs250/mt to Rs25,650/mt ex-Alang, the index for 2kg and 5kg plates declined by Rs50/mt each to Rs26,900/mt and Rs27,900/mt ex-Alang, respectively.
Yards are expecting more tonnages in the near term and demand from the mills are likely to pick up, which will push scrap prices, said ship recyclers.