Indian shipbreaking scrap prices in Alang rose for the second consecutive day amid continued shortage of tonnages at the yards. Demand from the rolling mills is firm in Gujarat and mills are procuring raw material on a need basis.
The daily Davis Index for 14Ani rose by Rs600/mt ($8.16/mt) to Rs38,800 ex-Alang and the index for 8Ani rose by Rs700/mt to Rs37,800/mt ex-Alang.
Meanwhile, the Gujarat High Court has also directed the state government to impose a lockdown to minimize the COVID-19 upsurge.
The daily Davis Indexes for 4Ani and 6Ani rose by Rs500/mt each, to Rs35,700/mt and Rs36,200/mt ex-Alang, respectively.
Demand from the auto and construction sector is firm till now, but there is still a chance for slowdown in the activities due to strict lockdown in Maharashtra.
The index for 2kg plates rose by Rs600/mt to Rs36,100/mt and the index for 5kg plates rose by Rs500/mt to Rs37000/mt ex-Alang.
In March, nine ships beached at Alang and the total tonnage decreased by 40pc as compared to the previous year.
The daily Davis Index for HMS attachments and Melting rose by Rs100/mt each to Rs33,800/mt and Rs32,800/mt respectively ex-Alang.
Traders are expecting domestic scrap prices to improve in the near term as international scrap offers are up and mills would prefer domestic scrap over imported.
($1=Rs73.44)