Prices of shipbreaking melting scrap rose on Wednesday amid gradual rise in demand from the rolling mills in the North and nearby cities coupled with shortage of material.
The daily Davis Indexes for 4Ani rose by Rs450/mt ($6.12/mt) to Rs26,500/mt ex-Alang and for 6Ani increased by Rs450/mt to Rs27,500/mt ex-Alang.
Shipbreakers have increased their offers due to shortage of scrap in local market. The index for 8Ani rose by Rs500/mt to Rs28,700/mt ex-Alang and a few transactions were reported at the index price on Wednesday.
The index for 10Ani rose by Rs500/mt to Rs29,200/mt ex-Alang, as demand from the auto and construction sector is slowing picking up with mills still focusing on exports.
The indexes for 1kg plates rose by Rs300/mt to Rs25,650/mt, and for 2kg plates rose by Rs500/mt to Rs27,350/mt ex-Alang.
Shipbreakers were already expecting the price hike as finished steel makers have increased hot-rolled coil prices. They are expecting the market to take a breather before moving northwards once domestic demand picks up.
Ferrous scrap prices remained firm on Wednesday as mills booked raw material but in a staggered manner. The daily Davis Index for HMS attachments and Melting rose by Rs300/mt each to Rs25,550/mt and Rs24,550/mt ex-Alang, respectively.