Indian shipbreaking scrap prices increased amid prolonged shortage of tonnage at the yards. Suppliers increased their offers after gas cutting activities at the yards were affected due to shortage of oxygen cylinders in Alang.
The daily Davis Index for Melting and HMS attachments rose by Rs600/mt ($8/mt) each to Rs33,100/mt and and Rs34,100/mt ex-Alang, respectively.
Demand from mills in Mandi Gobindgarh and Gujarat remained firm and offers for the imported scrap were in the range of $430-440 for UAE-origin. Mills are looking to procure scrap from the nearest location which will save the transit time, hence, domestic scrap is still being preferred over imported.
The index for 4Ani rose by Rs500/mt to Rs37,000/mt ex-Alang, and the index for 12Ani rose by Rs300/mt to Rs39,300/mt ex-Alang.
Demand from auto and construction sectors was firm, which moved the ship plate prices northwards. The daily Davis Indexes for 1kg and 2kg plates rose by Rs600/mt each to Rs34,300/mt and Rs37,300/mt ex-Alang, respectively.
Market participants are unable to figure out the price direction due to the ongoing pandemic and renewd lockdown restrictions. However, major steel players are continuously hiking prices which could impact the raw material prices.