Shipbreaking scrap prices declined on Thursday amid sluggish demand from local rolling mills. Shipbreakers decided to reduce offers to attract bids in a quiet market.
The daily Davis Index for 6Ani declined by Rs500/mt ($6.70/mt) to Rs39,500/mt ex-Alang and the index for 4Ani declined by Rs300/mt to Rs38,700/mt ex-Alang. Demand from ingot makers in Mandi subsided as rumours regarding power cuts spread across the market participants, however, this news is not confirmed.
The index for 10Ani declined by Rs300/mt to Rs41,500/mt ex-Alang and the index for 12Ani fell by Rs200/mt to Rs41,800/mt ex-Alang.
Ship plate prices also declined in line with rolling scrap, the index for 1kg plates declined by Rs400/mt to Rs34,800/mt ex-Alang and the index for 5kg plates dipped by Rs400/mt to Rs39,900/mt ex-Alang.
Market participants expect ferrous scrap prices to stay under pressure as mills slash production gradually in line with low demand from consuming sectors. Mills now prefer procure scrap on a just-in-time basis while waiting for the finished steel market to nudge higher.
The daily Davis Index for HMS attachments and Melting declined by Rs400/mt each to Rs34,600/mt and Rs33,600/mt ex-Alang respectively.