Shipbreaking scrap prices declined Monday as demand from mills slumped. A drop in domestic steel prices dampened market sentiment.
The daily Davis Index for 4Ani declined by Rs1,000/mt ($13.48/mt) to Rs38,000/mt ex-Alang and the index for 6Ani declined by Rs1,200/mt to Rs39,800/mt ex-Alang.
Mills are buying scrap on a need basis to clear finished steel inventories, while on the other hand, ship recyclers also have piled up inventories as trades remained suspended during the strike. Moreover, domestic steel prices fell by Rs1,000/mt following a slump in international iron ore prices. This further lowered mills’ appetite for scrap. There is also a possibility of local miners lowering iron ore, sponge iron and pig iron prices to match the global trend, which could in turn pressure ship scrap prices.
The index for 8Ani declined by Rs1,300/mt to Rs41,700/mt ex-Alang and the index for 10Ani declined by Rs1,200/mt to Rs42,500/mt ex-Alang.
Ship plate prices also followed a similar trend and the index for 2kg and 5kg plates declined by Rs800/mt and Rs1,200 to Rs39,500/mt and Rs40,800/mt ex-Alang, respectively.
Scrap prices could remain under pressure till demand for domestic steel demand recovers, the daily Davis Index for HMS attachments and Melting declined by Rs1,400/mt and Rs1,200/mt to Rs35,600/mt and Rs34,800/mt ex-Alang, respectively.