Indian shipbreaking scrap prices continued to rise for the third consecutive day as demand is steadily picking-up from the rolling mills in Mandi Gobindgarh.
The daily Davis Index for 8Ani rose by Rs300/mt ($4.07/mt) to Rs28,350/mt ex-Alang and the index for 4Ani rose by Rs200/mt to Rs26,300/mt ex-Alang. A few transactions were reported for these grades at the index price.
Mills were keen to book more material anticipating a gradual rise in demand form the end-users and overseas market. The daily Davis Indexes for 6Ani rose by Rs250/mt to Rs27,350/mt ex-Alang and for 12Ani rose by Rs150/mt to Rs29,050/mt ex-Alang.
Demand from the auto sector is picking up and infrastructure activities have also commence leading to increase in demand for ship plates.
The daily Davis Indexes for 1kg plates rose by Rs300/mt to Rs25,550/mt ex-Alang, and for 2kg and 5kg plates rose by Rs100/mt each to Rs26,900/mt and Rs27,900/mt ex-Alang, respectively.
Supply of scrap in the local market is scarce even as mills are preferring local scrap due to its quick delivery. The daily Davis Index for HMS attachments and Melting rose by Rs200/mt each to Rs25,400/mt and Rs24,400/mt ex-Alang, respectively.
Shipbreakers anticipate prices to remain firm in the coming week as local demand is gradually picking-up.