Shipbreaking scrap prices recovered on Tuesday as demand from the ingot makers in Mandi Gobindgarh saw an uptick. Supply of scrap through recycling remains tight in Alang, and yard owners increased offers for re-rolling scrap.
The daily Davis Index for HMS attachments and Melting rose by Rs200/mt ($2.68/mt) to Rs34,800/mt and Rs33,800/mt ex-Alang, respectively.
Mills continued to adopt a just-in-time inventory strategy as domestic demand is still low. Large-scale steelmakers focussed on export markets.
The daily Davis Index for 12Ani rose by Rs300/mt to Rs42,000/mt ex-Alang, and the index for 10Ani rose by Rs100/mt to Rs41,600/mt ex-Alang.
Ship plate prices also rose as some mills bought material to meet their daily melt requirements. The index for 1kg plates rose by Rs800/mt to Rs35,700/mt ex-Alang, and the index for 2kg plates was up by Rs300/mt to Rs39,300/mt ex-Alang.
Participants, however, state scrap prices could come under pressure again as demand from end-users is low amid monsoon and fear of the third wave of the lockdown.