Shipbreaking scrap prices, Monday, rose as supply remained tight. Mills bought only to replenish immediate melt requirements and meet their daily production target. The overall sentiment is weak as heavy rainfall in many parts of India slowed transportation and demand from end-users.
The daily Davis Index for HMS attachments and Melting rose by Rs900/mt($12.01/mt) each to Rs35,900/mt and Rs34,900/mt ex-Alang, respectively.
Shipbreaker rose their offers for the re-rolling scrap due to low arrival of tonnages in Alang as Pakistan and Bangladesh are offering higher prices for the vessels.
The daily Davis Index for 4Ani rose by Rs800/mt to Rs38,900/mt ex-Alang and the index for 6Ani rose by Rs600/mt to Rs40,400/mt ex-Alang.
Demand from ingot makers in Mandi Gobindgarh rose over the weekend. This improved sentiment in Alang as Mandi is a major buyer of shipbreaking scrap.
Ship plate prices also rose in line with the scrap prices and the daily Davis Index for 1kg plate rose by Rs800/mt to Rs36,000/mt ex-Alang. The index for 5kg plates rose Rs1,100/mt to Rs41,300/mt ex-Alang .
Ferrous scrap prices could remain firm till monsoon retreats due to tight supply. Mills are currently preferring local scrap over imported amid a widening gap between international prices and domestic prices.