Indian shipbreaking scrap prices rose on Monday amid a gradual rise in demand from the rolling mills in the North. The daily Davis Indexes for HMS attachments and Melting Monday rose by Rs800/mt ($11/mt) to Rs25,350/mt and Rs24,350/mt ex-Alang, respectively, from Thursday.
For the last three weeks, yards in Alang are facing a major shortage of oxygen. Without oxygen, most hot work-related cutting operations are on a standstill. Prices of oxygen cylinders have hit an all-time high. Despite the high prices, recyclers are trying all possible means to arrange for oxygen, but the supply chain is extremely tight.
Shipbreakers raised their offers as high oxygen prices narrowed margins. The index for 4Ani rose by Rs500/mt to Rs26,000/mt ex-Alang, while the index for 6Ani rose by Rs700/mt to Rs27,000/mt ex-Alang.
Few transactions were heard for 8Ani at the index price, the daily index rose by Rs850/mt to Rs28,100/mt ex-Alang.
Demand from the construction segment is slowly picking up, supporting steel plate prices. The daily Davis Index for 1kg plates rose by Rs900/mt to Rs25,550/mt ex-Alang and the index for 2kg plates rose by Rs650/mt to Rs26,650/mt ex-Alang.
Shipbreakers are worried about the daily rise in COVID-19 cases and are adopting a wait-and-watch strategy to get a clear picture of finished steel demand.