Shipbreaking scrap prices declined for the second consecutive day amid low buying from rolling mills in the North. The daily Davis Index for 4Ani declined by Rs450/mt ($6.12/mt) to Rs26,000/mt ex-Alang with a few trades reported at the index price.

 

The indexes for 6Ani declined further by Rs550/mt to Rs27,000/mt ex-Alang while 8Ani declined by Rs517/mt to Rs28,983/mt.

Shipbreakers have reduced their offers to clear available inventories and most of the bookings were from Gujarat-based market.

 

The index for 12Ani declined by Rs550/mt to Rs29,550/mt ex-Alang. The daily Davis Index for 14Ani declined by Rs500/mt to Rs29,550/mt ex-Alang.

 

Demand from the construction segment continues to be low due to heavy rains. The daily Davis Indexes for 2kg plates declined by Rs850/mt to Rs26,650/mt ex-Alang while 5kg plates declined by Rs850/mt to Rs27650/mt ex-Alang.

 

Mills are already stockpiled with raw material lately and are waiting for the demand to pick-up post monsoon. The daily Davis Index for HMS attachments and Melting declined by Rs300/mt each to Rs24,950/mt and Rs23,950/mt, respectively.

 

Shipbreakers are expecting prices to improve in the near term as major mills in India have increased their finished steel prices which will keep the raw material prices firm.

 

($1=Rs73.5)

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