Shipbreaking scrap prices in Alang experienced an uptick due to slowdown in production activity amid low supply of oxygen cylinders, which is used by gas cutters. Shipbreakers increased their offers on Tuesday by Rs300-500/mt. Mills were seen buying on a need basis and the procurement of raw material was done only to fulfill the daily production target. A major mill was also heard to go under maintenance for a week.
The daily Davis Index for Melting and HMS attachments rose by Rs300/mt ($4/mt) each to Rs33,400/mt and Rs34,400/mt ex-Alang, respectively. Shipbreakers are worried due to the shortage of oxygen cylinder as majority of the supply has been diverted to hospitals due to the surge in COVID-19 cases. The prices for oxygen cylinders are also expected to be doubled soon, and yards could shut down their production if the shortage continues.
The daily Davis Index for 8Ani rose by Rs500/mt to Rs39,000/mt ex-Alang and the index for 14Ani rose by Rs500/mt to Rs39,800/mt ex-Alang.
Ship plate prices also moved northward due to the slow down in gas cutting process. The index for 1kg plates rose by Rs300/mt to Rs34,600/mt ex-Alang and the index for 2kg plates rose by Rs600/mt to Rs37,900/mt ex-Alang. There is still a cloud of uncertainty regarding the price direction due to the rising COVID-19 infections and shipbreakers are preferring to wait and watch till the situation normalizes.
($1= Rs75.04)