Shipbreaking scrap prices declined on Wednesday amid low demand from the local mills.
The daily Davis Index for HMS attachments and Melting declined by Rs600/mt ($8.07/mt) each to Rs37,700/mt and Rs36,700/mt ex-Alang, respectively.
Mills have restocked inventories in the past few days and are now only buying on a need basis. Suppliers reduced offers to attract bids as demand from end-users is low.
The daily Davis Index for 8Ani declined by Rs500/mt to Rs39,900/mt ex-Alang and the indexes for 10Ani and 14Ani settled flat at Rs39,800/mt and Rs40,500/mt ex-Alang, respectively.
Demand for ship plates also declined due to slowdown in construction activities amid lockdown restrictions. The index for 1kg plates declined by Rs600/mt to Rs37,900/mt ex-Alang and the index for 5kg plates declined by Rs100/mt to Rs39,800/mt ex-Alang.
Major yards in Alang have cut production while other smaller recyclers have already stopped activities because of a shortage of oxygen cylinders. There are only 25 plants across Alang that produce and supply oxygen cylinder, of which 15 have been diverting supply for government use.
Market participants are waiting for clear price direction amid rising number of COVID-19 infections.