Shipbreaking scrap prices declined for the second consecutive day amid subdued demand from rolling mills. TMT sales were low amid sluggish demand from the end-users, which forced shipbreakers to reduce offers to attract bids.
The daily Davis Index for 4Ani declined by Rs700/mt ($9.59/mt) to Rs39,000/mt ex-Alang and the index for 6Ani declined by Rs500/mt to Rs40,100/mt ex-Alang.
Arrival of monsoon has slowed down demand from end-users on Wednesday and mills were seen buying ferrous scrap on a need basis as they still have stockpiled inventories of finished steel.
The index for 8Ani declined by Rs400/mt to Rs41,200/mt ex-Alang and the index for 10Ani declined by Rs300/mt to Rs41,900/mt ex-Alang.
Demand from the construction sector has also been low due to heavy rainfall, resulting in decline in ship plates prices on Wednesday. The daily Davis Index for 1kg plates declined by Rs500/mt to Rs38,000/mt ex-Alang and the index for 2kg plates declined by Rs600/mt to Rs40,000/mt ex-Alang.
Market participants are waiting to get a clear price direction, with some expecting the prices to improve in the near-term as mills turn their focus on exports.
The daily Davis Index for HMS attachments and Melting declined by Rs500/mt each to Rs37,800/mt and Rs36,800/mt ex-Alang, respectively.