Shipbreaking scrap prices declined on Friday as mills decided to wait and watch before procuring material. Demand from the end-users is still low in Indian market due to lockdowns and other restrictions.
The daily Davis Index for HMS attachments and Melting declined by Rs300/mt ($4.09/mt) each to Rs40,300/mt and Rs39,300/mt ex-Alang, respectively.
Shipbreakers reduced offers to attract bids, however, there is a shortage of tonnage which could keep prices firm in the near term.
The daily Davis Index for 4Ani declined by Rs200/mt to Rs41,000/mt ex-Alang and the index for 6Ani declined by Rs300/mt to Rs41,800/mt ex-Alang.
Rollings mills in Mandi Gobindgarh, that majorly consumes shipbreaking scrap, witnessed a decline in ingot price by Rs500-600/mt as finished steel makers slowed production due to the shortage of oxygen cylinder.
The Index for 10Ani and 12Ani declined by Rs400/mt each to Rs41,700/mt and Rs41,800/mt ex-Alang, respectively.
International markets remained calm as major importer of ferrous scrap, Turkey, remained silent due to Eid holidays.
Traders in India are currently waiting to get a clear price direction and expect prices to improve once the lockdown is lifted.
The index for 1kg plates declined by Rs400/mt to Rs40,600/mt ex-Alang and the index for 5kg plates declined by Rs300/mt to Rs41,700/mt ex-Alang.