Shipbreaking rolling scrap prices declined further on Thursday amid low offers and weak demand from rolling mills. The daily Davis Index for 10Ani fell by Rs600/mt ($7.98/mt) to Rs29,650/mt ex-Alang, the index for 4Ani dipped by Rs425/mt to Rs27,275/mt ex-Alang.
Yards in Alang continued to reduce offers to offload stocked inventories. The daily Davis Index for 12Ani declined by Rs600/mt to Rs29,850/mt ex-Alang. The index for 14Ani fell by Rs500/mt to Rs29,950/mt ex-Alang.
Mill owners have adopted a wait-and-watch stance to get a clear idea of scrap and steel prices, going forward. Demand for steel plates has also slowed down due to heavy rains in the nearby cities.
The daily Davis Index for 1kg plates declined by Rs100/mt to Rs25,150/mt ex-Alang, 2kg plates declined by Rs850/mt to Rs27,450/mt ex-Alang, 5kg plates declined by Rs550/mt to Rs28,450/mt ex-Alang.
Few trades were heard for HMS attachments and Melting scrap. The daily Davis Index for HMS attachments and Melting declined by Rs50/mt each to Rs25,000/mt and Rs24,000/mt ex-Alang, respectively.
Demand for finished steel is majorly driven by a revival in auto sector demand. Automakers are expecting high sales during the upcoming festive season, which in turn will spur production and boost raw material uptake in the near week, said market participants.