Prices of shipbreaking rolling scrap in India declined on sluggish demand from the rolling mills. Mills are still facing shortage of oxygen and demand from end-users is also low.
The daily Davis Indexes for 4Ani declined by Rs200/mt ($2.72/mt) to Rs26,000/mt ex-Alang, and for 6Ani declined by Rs500/mt to RS26,700/mt ex-Alang. A few trades were reported at the index price.
Alang is the worst-affected market as yards are bearing the cost of procuring oxygen that has shot up to Rs45/cbm from Rs16/cbm due to shortage.
The indexes for 10Ani and 12Ani declined by Rs500/mt each to Rs28,150/mt and Rs28,400/mt ex-Alang, respectively.
Demand for steel plates declined further on Wednesday with the Davis Indexes for 2kg plates declining by Rs900/mt to Rs26,300/mt ex-Alang and for 5kg plates dropping by Rs750/mt to Rs27,450/mt ex-Alang.
Mill refrained from buying raw materials till demand from end-users picks-up. The indexes for HMS attachments and Melting declined by Rs400/mt each to Rs24,600/mt and Rs23,600/mt, respectively.
Shipbreakers are still expecting market to remain under pressure till supply of oxygen cylinders gets back on track.