Indian shipbreaking scrap prices declined on Thursday as suppliers reduced their offers amid low demand from the mills in the North and Gujarat region.
The daily Davis Index for HMS attachments and Melting declined by Rs200/mt ($2.68/mt) each to Rs33,300/mt and Rs32,300/mt ex-Alang, respectively.
Rising COVID-19 cases and lockdown in Gujarat is worrying mill owners and scrap suppliers as migrant workers have started moving out of the state, creating shortage of workforce in the yards in Alang.
Short supply of oxygen cylinders has also slowed down gas cutting activity in Alang, which pushed the offers for rolling scrap by Rs300-500/mt.
The daily Davis Index for 4Ani rose by Rs400/mt to Rs36,300/mt ex-Alang and the index for 6Ani rose by Rs500/mt to Rs37,000/mt ex-Alang.
Demand from the construction and the auto segment is firm but prolonged shortage of material has spiked ship plates prices. The index for 2kg plates rose by Rs600/mt to Rs36,800/mt ex-Alang and the index for 5kg plates rose by Rs400/mt to Rs37,600/mt ex-Alang.
After a gap of two months, a cruise ship named MV Columbus was bought in Alang with total tonnage of 29,058ldt at $414/ldt. The vessel is yet to be beached and is at Alang’s outer anchorage currently.
Traders are expecting ferrous scrap prices to remain under pressure till the partial lockdown measures and restrictions are in place.