Shipbreaking scrap prices rose on Monday as mills in Gujarat resumed material procurement and stocked up raw materials ahead of monsoon.
The daily Davis Index for 4Ani rose by Rs600/mt ($8.09/mt) to Rs40,400/mt ex-Alang and the index for 6Ani rose by Rs600/mt to Rs41400/mt ex-Alang.
Fewer vessels arrived in Alang in June compared to Pakistan and Bangladesh as per latest reports. A shortage of tonnage in India continued to support prices.
The index for 8Ani rose by Rs1,000/mt to Rs43,000/mt ex-Alang and the index for 10Ani rose by Rs700/mt to Rs43,700/mt ex-Alang.
Demand for ship plates moved up in line with rolling scrap and the index for 1kg plates rose by Rs800/mt to Rs39,000/mt ex-Alang and the index for 5kg plates rose by Rs600/mt to Rs42,000/mt ex-Alang.
Market participants expect finished steel sales stay under pressure amid monsoon season. Large-scale mills, however, continued to tap export markets which should support raw material prices amid supply crunch. Demand for steel in overseas markets is stronger compared to the domestic market.
The daily Davis Index for HMS attachments rose by Rs700/mt to Rs38,700/mt and the index for Melting rose by Rs800/mt to Rs37,800/mt ex-Alang.
($1=Rs74.11)