Ship dismantling activity has slowed down due to the rise in COVID-19 infections coupled with shortage of oxygen cylinders in the yards. Demand from the local mills is still firm, pushing up offers for shipbreaking scrap.
The daily Davis Index for 10Ani rose by Rs600/mt ($7.98/mt) to Rs40,000/mt ex-Alang and the index for 8 Ani rose by Rs500/mt to Rs39,500/mt ex-Alang.
A few shipbreaking yards are expected to shut production as a major volume of oxygen cylinders has been diverted to hospitals for medical use. Delivery of material is also taking longer than usual due to the lockdown. Yards will be taking only limited orders from those dealers who do not have stock in hand.
The index for 14Ani rose by Rs400/mt to Rs40,200/mt ex-Alang and the index for 4Ani was up by Rs300/mt to Rs37,500/mt ex-Alang.
Demand for steel plates from the construction and auto segments is still firm, as many workers have been provided proper housing and medical facility to ensure that construction activity continues smoothly.
The daily Davis Indexes for 1kg and 2kg plates rose by Rs400/mt each to Rs35,000/mt and Rs38,300/mt ex-Alang, respectively.
Mills are preferring to procure raw material from the domestic market because of quick delivery, however, there is still a shortage of ferrous scrap in the domestic market. The daily Davis Index for HMS attachments and Melting rose by Rs400/mt each to Rs34,800/mt and Rs33,800/mt ex-Alang, respectively.