Indian shipbreaking scrap prices rose on Monday by Rs800-1,000/mt ($10.6-13.3/mt) from Friday as demand from rolling mills in North India and Gujarat market improved. The daily Davis Index for 14Ani rose by Rs1,000/mt to Rs28,550/mt ex-Alang.
The index for 4Ani increased by Rs950/mt to Rs26,500/mt ex-Alang. Demand for shipbreaking scrap is increasing as infrastructural projects have started to ramped up. Additional infusion of cash by RBI for the infrastructure sector is expected to help the construction segment in the near term.
The index for 6Ani rose by Rs850/mt to Rs27100/mt ex-Alang, few transactions took place at the index price. Few trades were also heard for 8Ani at index price on Monday, the index for 8Ani rose by Rs900/mt to Rs28,000/mt ex-Alang.
Demand for local steel plates increased helping shipbreakers hike offers by Rs700-800/mt on Monday. The daily Davis Index for 1kg and 2kg plated increased by Rs700/mt to Rs23,950/mt and 27,000/mt ex-Alang. The index for 5kg plates increased by Rs800/mt to Rs27,350/mt ex-Alang.
Mills are stocking raw material inventories as they expect prices to increase further, however, there is still a shortage of ferrous scrap in the local market. The daily index for HMS attachments and Melting rose by Rs700/mt to Rs23,650/mt and Rs22,650/mt ex-Alang. Local mill owners are booking domestic ferrous scrap over imported due to better availability.
Recently, three container vessels with total 7,362/ldt at $233/ldt were bought by Indian shipbreakers under HKC green recycling.