Ending its two days of rally, shipbreaking scrap prices took a breather on Wednesday. Demand from rolling mills in North India slowed down amid low finished steel consumption by end-users.
The daily Davis Index for HMS melting and Attachments declined by Rs550/mt ($7.51/mt) to Rs25,250/mt and 24,300/mt ex-Alang, respectively.
The index for 4Ani declined by Rs550/mt to Rs26,450/mt ex-Alang and the index for 6Ani declined by Rs400/mt to Rs27550/mt ex-Alang.
Since mills have already stocked up enough inventories, they are waiting for end-user demand to pick up before booking more material. The rainy season, however, has slowed construction activities.
The daily Davis index for 8Ani declined by Rs50/mt to Rs29500/mt and 10Ani declined by Rs200/mt to Rs30,000/mt ex-Alang. Few trades were heard for 8Ani and 10Ani at the index prices.
Demand for plates was tepid and the index for 1kg fell by Rs600/mt to Rs25,350/mt and the index for 2kg plates declined by Rs400/mt to Rs27500/mt ex-Alang.
Shipbreakers, however, are optimistic about prices improving in the near term since the demand for finished steel is expected to rise. After the sales improve, mills are likely to return to the market for restocking material.