Shipbreaking scrap prices rose on Friday amid increased offers due to shortage of scrap at the yards in Alang. Demand from the rolling mills in Gujarat remained firm. Milla are still buying cautiously.
The daily Davis Index for 4Ani rose by Rs800/mt ($10.91/mt) to Rs35,200/mt ex-Alang and the index for 8Ani rose by Rs600/mt to Rs37,000/mt ex-Alang.
Finished steel makers are expected to increase their prices by Rs2,000/mt on the back of higher international steel and iron ore prices. Consumption of scrap should also increase from the secondary steel mills to fulfill the demand from the end-users.
The indexes for 14Ani and 12Ani rose by Rs800/mt each to Rs38,300/mt and Rs38,100/mt ex-Alang, respectively.
Demand for steel plates also increased, pushing the prices up for shipbreaking plates. The index for 1kg plates rose by Rs400/mt to Rs33,700/mt ex-Alang and the index for 5kg plates rose by Rs900/mt to Rs36,300/mt ex-Alang.
Traders are hoping that prices for raw material will mprove in near term as demand for finished steel is expected to increase.
The daily Davis Index for HMS attachments and Melting rose by Rs700/mt each to Rs33,500/mt and Rs32,500/mt ex-Alang, respectively.
($1=Rs73.31)