Slowdown in dismantling activity and low availability of tonnages at Alang spiked shipbreaking scrap prices on Friday. Demand from the local mills was firm, however, oxygen supplies have been diverted for hospitals which slowed down gas cutting activity. Around 70-100mt of oxygen is required daily at Alang to carry out the dismantling procedure.
The daily Davis Index for 10Ani rose by Rs700/mt ($9.33/mt) to Rs39,400/mt ex-Alang and the index for 4Ani rose by Rs500/mt to Rs38,200/mt ex-Alang.
Mills looked to restock inventories before shipbreaking yards shut down at Alang. The index for 14ani rose by Rs400/mt to Rs39,400/mt ex-Alang.
Transportation activity has slowed due to the stringent lockdown measures imposed by the government, which has directly impacted freight rates.
The index for 1kg and 2kg plates rose by Rs600/mt each to Rs37,500/mt and Rs39,900/mt ex-Alang respectively.
The index for HMS attachments and Melting rose by Rs700/mt each to Rs37,300/mt and Rs36,300/mt respectively ex-Alang.
Market participants expect shipbreaking prices to rise further amid shortage of tonnages and firm demand.
($1= Rs74.9)