Shipbreaking scrap prices remained mixed on Thursday amid tepid demand from the rolling mills in Gujarat. Mills were buying on a need basis due uncertain market conditions owing to the resurgence of COVID-19 infections.
The daily Davis Index for 4Ani rose by Rs200/mt ($2.66/mt) to Rs37,700/mt ex-Alang and the index for 6Ani rose by Rs100/mt to Rs38,100/mt ex-Alang.
Suppliers reduced their offers for a few grades by Rs500-700/mt as demand was subdued. The daily index for 10Ani declined by Rs800/mt to Rs38,700/mt ex-Alang and the index for 12Ani declined by Rs700/mt to Rs38,900/mt ex-Alang.
Dismantling process has slowed down at yards in Alang due to the shortage of tonnage. Gas cutting process has came to a halt as the country is facing severe crunch of liquid oxygen, and all available cylinders are being diverted for medical use. A few mills are trying to stock up inventories with focus on the export market, as domestic demand is sluggish.
The daily Davis Index for 1kg plates rose by Rs400/mt to Rs36,900/mt ex-Alang and the index for 2kg plates rose by Rs300/mt to Rs38,300/mt ex-Alang.
Market participants feel there is room for steel manufacturing giants to increase prices to bring it at par with global prices, despite a sharp rise in domestic steel rates over the past six months. Local demand for scrap could also increase in the near-term.
The index for HMS attachments and Melting rose by Rs300/mt each to Rs36,600/mt and Rs35,600/mt ex-Alang, respectively, amid shortage of material.