Shipbreaking scrap prices on Friday declined amid an oversupply of tonnages at Alang yards. Shipbreakers preferred to lower their offer to clear excess inventories. The daily Davis Index for 4Ani fell by Rs400/mt ($5.46/mt) to Rs25,600/mt ex-Alang, few trades were heard at the index price.
Demand for rolling scrap is low from the mills in North as well as the local Gujarat mills. The index for 6Ani declined by Rs750/mt to Rs26,450/mt ex-Alang, trades were heard at the index price.
The index for 8Ani and 10Ani declined by Rs650/mt each to Rs27,650/mt and Rs28,150/mt ex-Alang, respectively.
Demand from ship plates remained subdued on Friday due to the slowdown in construction activities and liquidity crunch in the market.
The daily Davis Index for 1kg plates fell by Rs1,000/mt to Rs24,650/mt ex-Alang. The index for 2kg plates declined by Rs400/mt to Rs26,400/mt ex-Alang.
Mills are booking scrap in limited quantity as demand from end-users is yet to pick up. The daily Davis Index for HMS attachments and Melting fell by Rs950/mt each to Rs24,550/mt and Rs23,550/mt ex-Alang, respectively.
Shipbreakers are expecting prices to remain under pressure until steel demand from the construction sector improves.