Shipbreaking scrap prices continue their upward trend on Monday amid slow dismantling activity in Alang due to a shortage of oxygen supply. Demand from mills was limited on subdued production at end-users due to stringent lockdown measures across India.
The daily Davis Index for HMS attachments and Melting rose by Rs1,000/mt($13.63/mt) each since Friday to Rs40,300/mt and Rs39,300/mt ex-Alang, respectively.
Shortage of tonnages continued at Alang as Pakistani and Bangladeshi buyers bid higher for scrapped vessels.
The daily Davis Index for 4Ani rose by Rs700/mt to Rs40,700/mt and the index for 6Ani rose by Rs1,100/mt to Rs42,000/mt ex-Alang.
Indian mills are focusing on steel exports as domestic demand remains low. Mills preferred local scrap over imported amid high offers from scrap exporters.
The index for 10Ani and 12Ani rose by Rs500/mt each to Rs41,500/mt ex-Alang, respectively.
The slowdown in gas cutting activities has spiked ship plates prices. The index for 2kg plates rose by Rs900/mt to Rs41,700/mt ex-Alang and the index for 5kg plates rose by Rs500/mt to Rs41,500/mt ex-Alang.
Market participants are expecting the ferrous scrap prices to rise further in the near term as supply is tight and international offers are increasing.