Indian shipbreaking scrap prices rose on Tuesday — as forecast, after Holi celebrations on Monday — as rolling mills in Mandi Gobindgarh, which were reeling under trader’s strike since past few weeks, became active and started buying raw material.
The daily Davis Index for HMS attachments and Melting rose by Rs1,900/mt ($25.88/mt) each to Rs33,700/mt and Rs32,700/mt ex-Alang, respectively.
Demand from finished steel producers in Gujarat is still low as laborers are expected to return to work after 3-4 days.
There is still a shortage of tonnage at the yards in Alang, which also pushed up the scrap prices. The daily indexes for 4Ani and 6Ani rose by Rs2,000/mt each to Rs34,500/mt and Rs35,000/mt ex-Alang, respectively.
With COVID-19 infections rising at an alarming rate in the last two weeks and amid looming fear of lockdown in Maharashtra, mill owners are cautiously buying raw materials in bulk.
The index for 14Ani rose by Rs1600/mt to Rs37,800/mt ex-Alang and the daily Index for 8Ani rose by Rs1900/mt to Rs36,500/mt ex-Alang.
Low availability of shipbreaking plates has pushed the daily Davis Indexes for 1kg and 2kg plates up by Rs1,800/mt each to Rs33,800/mt and Rs34,500/mt ex-Alang, respectively.
Recyclers in Alang are continuously bidding for new vessels but Bangladesh and Pakistan are still ahead in procuring them at higher rates.