Shipbreaking scrap prices declined on Thursday pressured by low demand from rolling mills in Gujarat and Mandi Gobindgarh. Shipbreakers reduced their offers to attract bids in a low demand market.
The daily Davis Index for HMS attachment and Melting declined by Rs200/mt ($2.69/mt) each to Rs38,000/mt and Rs37,000/mt ex-Alang, respectively, on tepid demand.
Vessel arrivals have dropped in Alang leading to shortage of tonnages. The index for 4Ani and 6Ani rose by Rs100/mt to Rs39,800/mt and Rs40,800/mt ex-Alang, respectively.
Mills procured raw material only on a need basis and focussed on clearing finished steel inventories.
The index for 8Ani and 10Ani declined by Rs200/mt each to Rs41,900/mt and Rs42,700/mt ex-Alang, respectively.
Market participants are waiting for clear price direction since local demand is low and could decline further with the arrival of monsoon.
Construction activities are slow and demand for ship plates is also limited, the index for 1kg plates declined by Rs200/mt to Rs38,200/mt ex-Alang and the index for 5kg plates declined by Rs100/mt to Rs41,200/mt ex-Alang.
($1=Rs74.2)