Indian shipbreaking scrap prices bounced back on Wednesday after declining for two consecutive days. Surge in demand from the rolling mills in Mandi Gobindgarh moved raw material prices up. Yards in Alang are also witnessing shortage of tonnage.
The daily Davis Index for 4Ani rose by Rs400/mt ($5.48/mt) to Rs32,300/mt ex-Alang. The index for 6Ani rose by Rs550/mt to Rs33,300/mt ex-Alang on Wednesday.
Demand for finished steel in the local Gujarat market picked up late-Tuesday, which pushed scrap prices. However, on Wednesday, mills stayed away from buying raw material as they prefering staggered procurement.
The daily index for 12Ani rose by Rs750/mt to Rs36,000/mt ex-Alang while the index for 14Ani rose by Rs900/mt to Rs36,300/mt ex-Alang.
Shipbreakers increased their offers for plates due to its limited availability, and hence, the index for 1kg plates rose by Rs500/mt to Rs32,000/mt ex-Alang whole the index for 2kg plates rose by Rs600/mt to Rs32,800/mt ex-Alang.
The daily index for HMS attachments rose by Rs600/mt to Rs31900/mt ex-Alang and the index for Melting rose by Rs700/mt to Rs31,000/mt ex-Alang.
Total tonnage in February declined by 59pc to 91,221 LDT as compared to January. Traders across India are still waiting to get a clear price direction with a few of them expecting prices to remain firm due to shortage of raw material in the local market.