Indian shipbreaking rolling scrap prices Monday rose by Rs300-400/mt($3.98-5.31/mt) on increased offers and low availability of labour leading to supply crunch. Demand from north rose after a week, but many rolling mills still preferred to buy ingots instead of shipbreaking scrap due to high prices. The daily Davis Index for 8Ani rose by Rs600/mt to Rs27,950/mt ex-Alang.
The number of COVID-19 infections has spiked up in Alang, which has slowed ship dismantling operations. Also, mills in the region are working at minimum capacity due to the arrival of monsoon.
The daily Davis Index for 4Ani rose by Rs450/mt to Rs25,600/mt ex-Alang, few trades were reported at the index price. The index for 6Ani rose by Rs550/mt to Rs26,600/mt ex-Alang.
Labour cost for shipbreakers had increased due to a shortage of skilled workers (gas cutters) in Alang. Shipbreakers are paying more to retain workers at yards and continue dismantling activity. This has forced yards to increase the price of shipbreaking scrap.
The indexes for 14Ani rose by Rs600/mt to Rs28,550/mt, 1kg plates rose by Rs200/mt to Rs22,450/mt, 5kg plate rose by Rs200/mt to Rs26,550/mt ex-Alang.
Alang buyers were unable to book any market tonnage this week as Pakistan-based buyers paid $30/ldt or higher for scrap vessels. Buyers in India only bought HKC green units, particularly containers, few deals were heard at $300/ldt.
($1= Rs75.1)