Shipbreaking re-rolling scrap prices declined on Tuesday ending a week-long uptrend. Many re-rolling mills have slowed production which has reflected in the demand. The daily Davis Index for 4Ani declined by Rs400/mt ($5.41/mt) to Rs39,600/mt ex-Alang and the index for 6Ani declined by Rs100/mt to Rs40,600/mt ex-Alang.
Recycling operations at yards remain shut amid a shortage of oxygen which has impacted the gas cutting process. Yards are liquidating their previous inventories. Deals for 10Ani and 12Ani have also taken a hit with their settling flat at Rs39,800/mt and Rs40,300/mt ex-Alang, respectively.
The indexes for ship plates rose on tight supply and moderate demand. The daily Davis Index for 1kg plates rose by Rs400/mt to Rs39,200/mt ex-Alang.
Shortage of domestic scrap supported shipbreakers to increase their offers for melting scrap, the daily Davis Index for HMS attachments and Melting rose by Rs500/mt each to Rs39,000/mt and Rs38,000/mt ex-Alang, respectively.
Barring a few large-scale mills, most opted for domestic material with elevated freight increasing the landed cost for imported scrap.