Shipbreaking scrap prices in Alang continued its upward trend as shortage of tonnage since early-March and the r dent slowdown in gas cutting activity due to the scarce supply of oxygen cylinder continues to persist.
The daily Davis Index for 4Ani rose by Rs600/mt ($8.11/mt) to Rs40,000/mt ex-Alang and the index for 6Ani rose by Rs300/mt to Rs40,700/mt ex-Alang.
Demand from the local rolling mills is low as there is a slowdown in production, however a few mills are buying on a need basis to finish their daily production target.
The daily index for 8Ani rose by Rs600/mt to Rs600/mt to Rs41,000/mt ex-Alang. As majority of the yards in Alang have halted production, sales of few re-rolling grades have been hit which kept its prices unchanged. The daily Davis Index for 10Ani, 12Ani and 14Ani settled flat at Rs39,800/mt, Rs40,300/mt and Rs40,500/mt ex-Alang, respectively.
Demand from the steel plate consumers was sluggish too but low availability kept the scrap prices firm. The index for 1kg plate rose by Rs200/mt to Rs38,800/mt ex-Alang and the index for 5kg plates rose by Rs600/mt to Rs41,000/mt ex-Alang.
Offers for international ferrous scrap also increased amid shortage and rise in freight prices. This has also impacted domestic scrap prices; however, mills are still trying to procure scrap from the local market to keep transit time short. The daily Davis Index for HMS attachments and Melting rose by Rs200/mt each to Rs38,500/mt and Rs37,500/mt ex-Alang, respectively.