Shipbreaking scrap prices rose on Wednesday as rolling mills raised consumption while they re-stocked their raw material inventories.
Demand from the domestic end-users has been picking up slowly. The daily Davis Index for HMS attachments rose by Rs700/mt($9.43/mt) to Rs36,800/mt ex-Alang and the index for Melting rose by Rs500/mt to Rs35,800/mt ex-Alang.
Re-rolling scrap also rose driven by an uptick in demand from local mills, the index for 8Ani rose by Rs100/mt to Rs42,200/mt and the index for 12Ani rose by Rs200/mt to Rs43,000/mt ex-Alang.
Construction activities have resumed as monsoons have retreated, aiding demand for steel. The index for 1kg plates rose by Rs600/mt to Rs36,800/mt ex-Alang and the index for 2kg plates rose by Rs300/mt to Rs40,000/mt ex-Alang.
Market participants expect scrap prices to remain firm amid shortage coupled with the primary steelmakers’ decision to increase rebar prices in the near term.