Shipbreaking scrap prices fell on Tuesday amid low demand from the rolling mills. Finished sales were weak, resulting in low consumption of scrap by mills.
The daily Davis Index for HMS attachments declined by Rs700/mt ($9.41/mt) to Rs38,000/mt ex-Alang and the index for Melting declined by Rs1,000/mt to Rs36,800/mt ex-Alang in a quiet market amid low trades.
Shipbreakers dropped re-rolling scrap offers to induce demand from mills amid weak domestic fundamentals. The daily Davis Indexes for 8Ani and 10Ani declined by Rs100/mt to Rs42,900/mt and Rs43,600/mt ex-Alang, respectively.
The indexes for 4Ani and 6Ani settled unchanged at Rs40,400/mt and Rs41,400/mt ex-Alang, respectively. Despite tepid demand, prices were supported by a material shortage.
Demand for ship plates was also low as construction activities are yet to pick up. The monsoon rains could also hinder any improvement. The daily Davis Index for 1kg plates declined by Rs800/mt to Rs38,200/mt ex-Alang.
Market participants expect ferrous scrap prices to remain under pressure till the demand for finished steel picks up in the domestic market.