Shipbreaking scrap price rose on Monday amid a shortage of tonnages. With a resurgence of the COVID-19 pandemic in India, workers were unwilling to work full time, slowing recycling operations. Recyclers increased offers as demand from rolling mills in the state of Gujarat is still firm.
The daily Davis Index for HMS attachments and Melting rose by Rs200/mt ($2.72/mt) to Rs33,700/mt and Rs32,700/mt ex-Alang, respectively.
Rising COVID-19 cases and renewed lockdown measures in the neighbouring state of Maharashtra have created fear in Alang. Some yards could even pause work altogether if workers fail to return to work.
Steel demand in the automobile and construction sectors is improving. Additionally, a shortage of raw material in the local market could increase the scrap prices in the coming days.
The daily Davis Indexes for 1kg and 2kg plates rose by Rs200/mt to Rs33,900/mt and Rs35,500/mt ex-Alang, respectively. The indexes for 8Ani and 10Ani rose by Rs100/mt each to Rs37,100/mt and Rs37600/mt ex-Alang, respectively.
Only those vessels which need HKC-compliant yards are being scrapped in India at present. Bangladesh and Pakistan, on the other hand, are bidding higher. Thus, most scrapped vessels are making their way to those countries.
Prices for raw material could also increase aided by primary steelmakers raising finished steel prices by Rs3,000-4,000/mt ex-works.