Shipbreaking scrap prices remained flat on Wednesday, as demand from the rolling mills is still low and mill owners are buying raw materials in a staggered manner.
The daily Davis Index for HMS attachments and Melting settled flat at Rs24,550/mt ($332.8/mt) and Rs23,550/mt ex-Alang, respectively.
Yards in Alang are facing a production slowdown due to shortage of oxygen cylinders. They are paying almost double for the cylinders which is affecting their margins.
The daily Davis Index for 4Ani settled flat at Rs25,500/mt ex-Alang while the index for 6Ani declined by Rs50/mt to Rs26,250/mt ex-Alang.
The indexes for 12Ani and 14Ani settled flat at Rs27,800/mt and Rs28,000/mt ex-Alang, respectively. Few trades were heard in the local Gujarat market for ship plates at the index price.
The indexes for 2kg and 5kg plates rose by Rs150/mt to Rs26,000/mt and Rs27,000/mt ex-Alang, respectively.
Shipbreakers are still not optimistic about the demand and are expecting prices to remain under pressure for next few weeks.
The daily Davis Index for 8Ani declined by Rs50/mt to Rs27,250/mt ex-Alang on Wednesday.
($1= Rs73.74)