Shipbreaking scrap prices in Alang remained firm on Tuesday amid tight supply but demand from rolling mills in Gujarat continues to be sluggish.
Re-rolling scrap prices moved up as dismantling activity is slow due to shortage of oxygen cylinders. The daily Davis Index for 4Ani rose by Rs300/mt ($4.11/mt) to Rs38,800/mt ex-Alang and the index for 6Ani rose by Rs400/mt to Rs39,800/mt ex-Alang.
Demand from the end-users is still low amid stringent lockdown restrictions and mills were buying on a need basis. Neighboring countries Pakistan and Bangladesh are offering higher prices for vessels, leaving India out of the competition which has created a shortage of tonnage in Alang’s yards.
The index for 12Ani rose by Rs100/mt to Rs40,000/mt ex-Alang and the index for 14Ani settled flat at Rs40,000/mt ex-Alang.
Ship plates prices also followed a similar trend due to the slowdown in gas cutting activities. The index for 1kg plates rose by Rs200/mt to Rs37,000/mt ex-Alang and the index for 2kg plates rose by Rs600/mt to Rs40,000/mt ex-Alang.
Market participants expect prices to improve further in the immediate future as mills are eyeing the exports market amid improved Chinese market sentiments.
The daily Davis Index for HMS attachment and Melting rose by Rs100/mt each to Rs36,800/mt and Rs35,800/mt ex-Alang, respectively.