Sluggish demand for shipbreaking scrap on Monday brought down the indexes for all grades. The daily Davis Index for 4Ani declined by Rs1,000/mt ($13.69/mt) to Rs28,500/mt ($390.24/mt) ex-Alang due to lack of demand. Rolling mills held back purchases as the Union Budget was announced on Monday.
The daily Davis Indexes for 0.5kg and 1kg plates declined by Rs1,050/mt each to Rs27,200/mt and Rs27,100/mt ex-Alang, respectively, amid limited activity. With high finished steel prices making deals unviable for rolling mills, demand has gone down. The high prices have also affected the construction activities since last couple of weeks. Limited deals were reported.
The daily index for HMS attachments and Melting declined by Rs1,000/mt each to Rs27,050/mt and Rs26,050/mt ex-Alang, respectively, amid limited deals.
In the Union Budget, the government has proposed to double the Indian ship recycling capacity by 2024 to 4.5mn ldt and efforts are being made to bring more ships from Europe and Japan. This has instilled positive sentiment amongst the shipbreakers for the near future.