Shipbreaking scrap prices in Alang declined amid low demand from the rolling mills in Gujarat.
Mills refrained from buying ferrous scrap as shortage of liquid oxygen has led to slowdown in gas cutting activities.
The daily Davis Index for HMS attachments and Melting declined by Rs1,000/mt ($13.31/mt) each to Rs36,800/mt and Rs35,800/mt ex-Alang, respectively. Yard owners reduced their offers by Rs1,000-1,600/mt on Tuesday. The index for 12Ani declined by Rs1,600/mt to Rs40,000/mt ex-Alang and the index for 6Ani declined by Rs1,500/mt to Rs38,700/mt ex-Alang. Dismantling activity has slowed down in Alang due to shortage of oxygen cylinders at a time when the number of beached ships is already low — 10 in March and five in April till date.
More than 70pc of the yards in Alang now are non-functional with the remaining 20-odd yards expected to shutdown in a week.
Demand from the end-users is still under pressure due to the lockdown, forcing mills to reduce offer prices as sales took a hit at the previously-high prices. The indexes for 14Ani and 10Ani declined by Rs1500/mt each to Rs40,100/mt and Rs39,900/mt ex-Alang, respectively.
Ship plate prices also followed the similar trend — the daily index for 2kg plates declined by Rs1,500/mt to Rs38,700/mt ex-Alang and the index for 5kg plates declined by Rs1,900/mt to Rs39,000/mt ex-Alang. Shipbreakers expect prices to remain under pressure in the near-term as demand from end-users is uncertain due to the ongoing lockdown.