Shipbreaking scrap prices continued its upward trend for the fourth consecutive day on Thursday amid shortage of tonnage and slow down in gas cutting activity in Alang.
The daily Davis Index for HMS attachments and Melting rose by Rs700/mt ($9.31/mt) each to Rs35,500/mt and Rs34,500/mt ex-Alang, respectively.
Demand from the mills in Gujarat was firm and they are only procuring enough raw material to finish their daily production target.
The daily Davis Index for 4Ani rose by Rs700/mt to Rs38,200/mt ex-Alang and the index for 14Ani rose by Rs500/mt to Rs40,700/mt ex-Alang.
Offers for ship plates rose in line with the rolling scrap as demand from the construction sector is firm. The index for 1kg plates rose by Rs700/mt to Rs35,700/mt ex-Alang and the index for 2kg plates rose by Rs600/mt to Rs38,900/mt ex-Alang.
Mills are looking to procure scrap from the nearest location to save transit time, hence domestic scrap is still being preferred over imported. The daily Indexes for 8Ani rose by Rs500/mt to Rs40,000/mt ex-Alang and for 12Ani rose by Rs500/mt to Rs40,600/mt ex-Alang.
Yard owners are concerned about shortage of oxygen cylinders as they might have to shut operations if the crunch persist.
($1= Rs75.1)