India’s shipbreaking scrap prices increased on Monday on the back of steady demand from rolling mills. COVID-19 cases, however, continued to surge in many parts of India, including Mandi Gobindgarh which is likely to hit ingot and ferrous scrap trades.
The Mandi market will stay shut till Tuesday. After reopening, it will follow a five-day week till July 26 at the minimum.
The Davis Index for 8Ani rose by Rs350/mt ($4.63/mt) to Rs26,600/mt ex -Alang with trades at the index price. The index for 6Ani rose by Rs200/mt to Rs25,750/mt ex-Alang.
Mills stocked up raw material inventories before monsoons reach their peak and make logistics difficult. But in the near term, transactions will remain slow with planned maintenance activities at most mills.
The Davis Index for 4Ani rose by Rs50/mt from Friday to Rs24,600/mt.
Shipbreakers state Alang will stop buying more ships as yards are unable to house more ships. Dismantling activity remains slow as most skilled labourers are still away from yards.
The Davis Index for Melting declined by Rs150/mt to Rs21000/mt and the index for HMS attachments declined by Rs150/mt to Rs21,950/mt.
Shipbreaking scrap prices are likely to be under pressure throughout the week as demand from mills in the North will suffer.