Shipbreaking scrap prices in Alang declined on Monday amid low demand from the rolling mills in Mandi Gobindgarh. The daily Davis Index for HMS attachments declined by Rs500/mt ($6.57/mt) to Rs21,950/mt ex- Alang.
Shipbreakers adopted a wait-and-watch approach before bidding for new vessels as scrap prices are on a downtrend. The Davis Indexes for Melting declined by Rs500/mt to Rs20,950/mt, 1kg plates declined by Rs600/mt to Rs22,250/mt ex-Aland. The indexes for 4Ani and 6Ani settled flat at Rs24,150/mt and Rs25,150/mt ex-Alang respectively.
Demand for finished steel in the Indian market is still weak with a ripple effect on the raw material. Offers for vessels thus declined below $300/ldt with ship owners diverting their vessels to bullish Bangladesh and Pakistan markets.
The Davis indexes for 14Ani rose by Rs100/mt to Rs26,450/mt , 12Ani rose by Rs100/mt to Rs26,350/mt ex- Alang.
Mills continued to face a shortage of labour which has impacted production. The rising COVID-19 cases also dampened sentiment in the shipbreaking market.