Indian shipbreaking rolling scrap prices continued to rise on Thursday as demand from mills increased amid a shortage of material at yards. The daily Davis Index for 6Ani rose by Rs1,100/mt ($14.69/mt) to Rs29,450/mt ex-Alang.
Shipbreakers raised offers on tight supply, but most mills adopted a wait-and-watch approach as they expected price to settle. The daily index for 4Ani rose by Rs850/mt to Rs28,450/mt ex-Alang and the index for 8Ani rose by Rs650/mt to Rs30,250/mt, 10Ani rose by Rs900/mt to Rs30,850/mt ex-Alang.
Demand for finished steel has started to pick up this month and mills are focusing more on export orders. Major mills in India are now operating at near-normal production levels with capacity utilization at 90pc. This is supporting demand and prices of ferrous scrap in India. The index for 14Ani rose by Rs900/mt to Rs31,150/mt ex-Alang.
Demand for steel plates also increased this week, the index for 1kg plates increased by Rs600/mt to Rs26,150/mt, the index for 2kg plates rose by Rs950/mt to Rs28,950/mt and 5kg plates increased by Rs1,050/mt to Rs29,550/mt ex-Alang.
Domestic scrap prices also soared this week in Alang as mills preferred local scrap over imported. The index for HMS attachments and Melting rose by Rs850/mt to Rs26,000/mt and 25,000/mt ex-Alang.
Shipbreakers are expecting the market to take a breather after consecutive price hikes this week.