Indian shipbreaking scrap prices declined for the second day with demand still under pressure. Many recyclers were thus forced to reduce their asking prices.
The daily Davis Index for HMS attachments and Melting declined by Rs400/mt ($5.51/mt) to Rs31,600/mt and Rs30,600/mt ex-Alang.
Mills stayed from buying raw material as demand from the end-users remains low. Most mills expect steel demand in India to pick up in April after the Holi festival. The daily Davis Index for 4Ani declined by Rs450/mt to Rs32,550/mt ex-Alang and the index for 6Ani declined by Rs350/mt to Rs33,350/mt ex-Alang.
The adjoining state of Maharashtra is grappling with a surge in the number of COVID-19 cases. Local administrations in the state are thus forced to renew restrictions on movement. More stringent social distancing norms have also impacted the construction sector. Thus, the demand for steel plates in the sector has come under pressure. The index for 2kg plates declined by Rs300/mt to Rs33,000/mt ex-Alang and the index for 1kg plates declined by Rs400/mt to Rs31,800/mt ex-Alang.
Suppliers expect prices to remain firm on a shortage of raw material in the local market. But since international prices have fallen, buyers expect domestic scrap prices, including shipbreaking scrap to come under pressure.