Shipbreaking scrap prices continued a bull run for the third day amid firm demand and tight supply. Mills in Gujarat and Mandi Gobindgarh were back in the market for the material.
The daily Davis Indexes for HMS attachments and Melting rose by Rs500/mt ($6.85/mt) to Rs37,500/mt and Rs36,500/mt ex-Alang, respectively. Large-scale mills continued to focus on exports as domestic demand is yet to pick up.
The index for 4Ani rose by Rs400/mt to Rs39,700/mt ex-Alang, and the index for 6Ani rose by Rs700/mt to Rs41,000/mt ex-Alang.
Dismantling activity in Alang is still slow due to a shortage of oxygen cylinders and tonnages.
Shipbreakers have increased their offers for re-rolling scrap, pushing the indexes for 12Ani and 14Ani up by Rs500/mt to Rs41,400/mt and Rs4,1500/mt ex-Alang, respectively.
Ship plate prices also rose, and the index for 1kg plates was up by Rs500/mt to Rs37,700/mt ex-Alang. The index for 5kg plates rose by Rs700/mt to Rs4,1000/mt ex-Alang.
Market participants expect ferrous scrap prices to rise further amid firm demand from the ingot makers. Finished steelmakers have also increased their prices amid strong global cues.