Shipbreaking scrap prices rose amid increased offers from the suppliers. Demand for raw material from the rolling mills remained firm as end-users are forcing mills to dispatch their goods before the festival of Holi oon March 29.
Mills previously followed a wait-and-watch strategy and were buying raw material on need basis.
The daily Davis Index for 4Ani rose by Rs500/mt ($6.90/mt) to Rs32,500/mt ex-Alang and the index for 6Ani rose by Rs400/mt to Rs33,000/mt ex-Alang.
Shortage of material at the yards as well as low availability of laborers has slowed down the production in Alang. The index for 14Ani rose by Rs300/mt to Rs36,200/mt ex-Alang.
The index for 1kg plates rose by Rs500/mt to Rs32,000/mt ex-Alang, and the index for 2kg plates rose by Rs300/mt to Rs32,700/mt ex-Alang.
Traders are still waiting for a clear price direction and few of them are expecting raw material prices to rise further post-Holi.
The daily Davis Index for HMS attachments and Melting rose by Rs500/mt each to Rs31,800/mt and Rs30,800/mt ex-Alang, respectively.