Prices for domestic shipbreaking scrap on Tuesday came under pressure due to curtailed ingot production in Mandi Gobindgarh. With the number of COVID-19 cases rising, the North Indian market, where most of the shipbreaking scrap is sold is set to follow a five-day week. Recyclers have shifted their focus on other regions like UP, Rajasthan and Gujarat markets as they are distressed to destock.
The daily Davis Index for HMS attachments declined by Rs200/mt ($2.64/mt) to Rs21,750/mt ex-Alang.
The daily index for 4Ani rose by Rs150/mt to Rs24,750/mt ex- Alang as with transactions at the index price. The indexes for 8ANI rose by Rs300/mt to Rs26,900/mt ex-Alang and 10Ani rose by Rs350/mt to Rs27,300/mt ex- Alang.
A shortage of labour continues to slow demolition at Alang, but shipbreakers are expecting prices to improve in the near term as rolling mills are known to restock before monsoon season reaches its peak. Transportation becomes a hassle during the rainy season.
The daily Davis Index for 1kg plates declined by Rs200/mt to Rs22,050/mt ex-Alang, and the index for 5kg plates declined by Rs100/mt to Rs26,050/mt ex -Alang.
Major mills in India are expected to increase prices for primary and secondary steel by around Rs1,000/mt in the near term which in turn could have a ripple effect on scrap prices.