Shipbreaking scrap prices continued their fall on Friday amid low demand from the local rolling mills in Gujarat and in the North. Most steel mills are shut, while the remaining are operating at a lower production capacity due to a shortage of oxygen cylinders.
The daily Davis Index for 4Ani and 8Ani declined by Rs300/mt ($4.12/mt) each to Rs39,700/mt and Rs40,200/mt ex-Alang, respectively, as sellers lowered offers in a low demand market.
Lockdown restrictions in India has pressured prices with demand from the end users still struggling to improve. Ingot manufacturers in Mandi reduced their prices by Rs1,400/mt ex-works on Friday which which dragged down ferrous scrap.
The indexes for 12Ani and 14Ani settled at at Rs40,200/mt ex-Alang, down by Rs300/mt.
Demand from the infrastructure segment continues to be weak which prompted shipbreakers to slash their offers for ship plates.
The Davis Index for 1kg plates declined by Rs1,000/mt to Rs39,300/mt ex-Alang and the index for 2kg plates declined by Rs1,200/mt to Rs40,000/mt ex-Alang.
Mills are stalling procurement as they expect ferrous scrap prices to decline further, at least until domestic market for finished steel bounces back.
The daily Davis Index for HMS attachments settled at Rs39,000/mt ex-Alang and Melting settled at Rs38,000/mt ex-Alang, down by Rs500/mt, each.
($1=Rs72.8)