Shipbreaking scrap prices rose on Friday amid firm demand from the rolling mills. Export orders are rising, and mills are looking to procure domestic scrap over imported to avoid transit time.
The daily Davis Index for HMS attachments and Melting rose by Rs500/mt ($6.84/mt) each to Rs38,500/mt and Rs37,500/mt ex-Alang, respectively. Yards in Alang are still waiting for laborers who had migrated back to their native place during the lockdown to come back. Dismantling activity is low, prompting shipbreakers to increase offers for re-rolling scrap.
The daily Davis Index for 4Ani rose by Rs300/mt to Rs39,700/mt ex-Alang and the index for 6Ani rose by Rs600/mt to Rs40,700/mt ex-Alang.
Offers for ship plates also rose amid low availability and the index for 1kg plates rose by Rs500/mt to Rs38,700/mt ex-Alang while the index for 2kg plates rose by Rs400/mt to Rs40,200/mt ex-Alang.
Market participants expect ferrous scrap prices to improve due to its shortage and rising export orders. The index for 8Ani rose by Rs300/mt to Rs41,800/mt ex-Alang and the index for 10Ani rose by Rs400/mt to Rs42,500/mt ex-Alang.