Indian shipbreaking scrap prices continued its downward trend Monday amid low demand from rolling mills. The daily Davis Index for 1Kg plates Monday declined by Rs700/mt ($9.20/mt) to Rs22,150/mt ex-Alang from Friday.
Shipbreakers lowered their offers by Rs500-600/mt for 8Ani to reduce inventory and increase cash flow. The daily Davis Index for 8Ani declined by Rs650/mt to Rs25,100/mt ex-Alang. Trades were heard at the index price.
Many regions in India are reporting a spike in COVID-19 infections. This has worried mills that are expecting a return of labourers. A need for quarantine and other restrictions could lead to further slow down in production.
The daily Davis Index for 12Ani declined by Rs500/mt to Rs25,850/mt ex-Alang, while the index for 14Ani declined by Rs600/mt to Rs25,950/mt. The daily index for HMS attachments declined by Rs650/mt to Rs21,950/mt and the index for Melting declined by Rs500/mt to Rs21050/mt ex-Alang from Friday.
Ahead of monsoon, shipbreakers are in a hurry to finish there stocked up inventories, as vessels to be dismantled are already beaching at the port.
On the sales front, a container name Malanesian Pride with 5,607LDT sold at $270/LDT and a container SAMOA4 with 5,719LDT traded at $270/LDT, as per ship breakers in Alang.
Market participants are awaiting the next round of cash infusion for construction and infrastructural projects which could increase the demand for steel.