Shipbreaking melting scrap prices in declined amid low demand from the rolling mills. The daily Davis Index for 4Ani declined by Rs500/mt ($6.77/mt) to Rs25,500/mt ex-Alang.
Short supply of oxygen at the yards has slowed the production activity in majority of the yards.
Shipbreakers have reduced their offers to clear their inventories, and few trades were heard for 6Ani at the index price. The daily Davis Index for 6Ani declined by Rs300/mt to Rs26300/mt ex-Alang.
The index for 8Ani declined by Rs400/mt to Rs27,300/mt ex-Alang, with transactions reported at the index price.
Steel mills refrained from buying raw materials and preferred to wait-and-watch till demand from the end-users gains momentum. The index for 10Ani and 12Ani declined by Rs200/mt each to Rs27,800/mt and Rs28,000/mt ex-Alang, respectively.
Demand for ship plates continued to decline further on Tuesday. The index for 1kg plates and 2kg plates declined by Rs400/mt each to Rs24,650/mt and Rs25,850/mt ex-Alang, respectively.
The Daily Davis Index for HMS attachments and Melting declined by Rs300/mt each to Rs24,550/mt and Rs23,550/mt ex-Alang, respectively.
According to shipbreakers, prices are expected to remain under pressure till local demand picks-up and supply of oxygen is restored.