Shipbreaking scrap prices declined on Tuesday due to sluggish demand from the rolling mills in Gujarat. Mills recently restocked their raw material inventories as they are mainly focused on export markets. Domestic demand is yet to pick-up even though lockdown restrictions are slowly being lifted.
Shipbreakers reduced their offers for the re-rolling scrap to attract bids. The daily Davis Indexes for4Ani and 6Ani declined by Rs400/mt ($5.48/mt) each to Rs39,700/mt and Rs40,600/mt ex-Alang, respectively.
Oxygen supply is slowly getting back to normal and gas-cutting activities are gathering pace. The index for 8Ani declined by Rs100/mt to Rs41,600/mt and the index for 10Ani declined by Rs100/mt to Rs42,200/mt ex-Alang.
Demand for the ship plates is low from the construction sector. The index for 2kg plates declined by Rs200/mt to Rs40,600/mt ex-Alang while the index for 5kg plates declined by Rs300/mt to Rs41,000/mt ex-Alang.
Market participants are expecting ferrous scrap prices to remain firm on tight supply. Mills will need to procure more raw material to finish their daily production targets and fulfill the export orders.
The daily Davis Index for HMS attachments and Melting fell by Rs100/mt each to Rs38,300/mt and Rs37,300/mt ex-Alang, respectively.
($1=Rs72.88)