Shipbreaking scrap prices on Friday retreated amid sluggish demand from rolling mills in Gujarat. Mills have reduced scrap consumption as TMT sales are hit in lockdown. Mills procured raw material in a limited manner, to reach a minimum of daily targets.
The daily Davis Index for HMS attachments and Melting declined by Rs800/mt ($11.04/mt) each to Rs36,500/mt and Rs35,500/mt ex-Alang respectively.
Mills remain to work with less capacity due to scarcity of oxygen cylinders and shipbreakers have reduced their offers for re-rolling scrap to generate demand.
The index for 8Ani fell by Rs600/mt to Rs38,700/mt ex-Alang and the index for 10Ani was down by Rs300/mt to Rs39,000/mt ex-Alang.
Compressed demand from auto manufacturers and construction sectors has affected demand for ship plates mainly due to lockdowns.
The daily Davis Index for 1kg plates declined by Rs900/mt to Rs36,600/mt ex-Alang and the index for 2kg plates declined by Rs600/mt to Rs38,700/mt ex-Alang.
Market participants hope for finished steel sales to pickup as it is the only driver to increase demand for the ferrous scrap.