Shipbreaking scrap prices in Alang rose on Monday compared to last Friday amid slowdown in gas cutting activities due to shortage of liquid oxygen cylinders.
The daily Davis Index for 4Ani rose by Rs600/mt ($8/mt) to Rs39,500/mt ex-Alang and the index for 6Ani rose by Rs300/mt to Rs40,200/mt ex-Alang.
Demand from the rolling mills in Gujarat remained subdued but due to low availability of ferrous scrap, few grades in Alang settled flat.
The index for 8Ani and 10Ani settled unchanged at Rs40,900/mt and Rs41,400/mt ex-Alang, respectively.
A major TMT producer in Gujarat has decided to keep production suspended for one more week due to oxygen cylinders’ shortage, which could impact the supply of rebar to the construction sector.
Shipbreakers also increase offers for steel plates amid shortage though demand from construction industry is firm. The index for 1kg plates rose by Rs10,00/mt to Rs37,900/mt ex-Alang and the index for 2kg plates rose by Rs500/mt to Rs40,200/mt ex-Alang.
Scrap prices in Alang are at an all-time high. Traders expect prices to weaken as slowdown in gas cutting activities at mills could prevent them from purchasing ferrous scrap from the local suppliers.
The daily Davis Index for HMS attachments and Melting rose by Rs1000/mt each to Rs37,800/mt and Rs36,800/mt ex-Alang, respectively.
Recently a Reefer vessel named Ice Rose of 6,937ldt has been sold in Alang at $495/ldt.