Shipbreaking scrap prices declined on Monday as shipbreakers reduced their offers to boost sales.
The daily Davis Index for 4Ani declined by Rs300/mt ($4.04/mt) to Rs39,400/mt ex-Alang and the index for 8Ani declined by Rs100/mt to Rs42,000/mt ex-Alang on reduced offers from shipbreakers amid low sales.
The new delta virus has become a concern among the market participants as it poses a threat of a third wave. Domestic demand for finished steel is already low and mills are focused on grabbing export orders.
The index for 14Ani declined by Rs100/mt to Rs42,900/mt ex-Alang and the index for 10Ani rose by Rs200/mt to Rs42,900/mt ex-Alang with demand for a specific size increased from the rolling mills.
Steel plate prices continued to dip as construction activity has failed to gain momentum due to the rainy season. The index for 1kg plates declined by Rs600/mt to Rs36,600/mt ex-Alang, and the index for 2kg plates declined by Rs400/mt to Rs39,700/mt ex-Alang.
Demand for shipbreaking scrap in Mandi Gobindgarh remained low as mills continued to procure on a need basis amid low demand from local end-users.
The arrival of ships has increased in June with a preference for small-sized vessels.
The daily Davis Index for HMS attachments and Melting declined by Rs700/mt each to Rs36,300/mt and Rs35,300/mt ex-Alang, respectively.