Shipbreaking scrap prices remained firm on Monday amid slowdown in dismantling activities due to shortage of oxygen cylinders.
Mills have started increasing their raw material inventories to fulfill daily production target. The daily Davis Indexes for 8Ani and 10Ani rose by Rs100/mt ($1.37/mt) to Rs40,300/mt ex-Alang each.
The indexes for 12Ani and 14Ani both rose by Rs100/mt and settled at Rs40,300/mt ex-Alang. Shortage of tonnage in Alang continues as scrapped vessels made way to Pakistan and Bangladesh where recyclers bid higher than their Indian counterparts.
Demand from the end-users is still low due to lockdown restrictions, however, shortage of ferrous scrap in local market kept prices firm.
The daily Davis Index for 1kg plates settled flat at Rs39,200/mt ex-Alang and the index for 2kg plates declined by Rs300/mt to Rs40,300/mt ex-Alang.
Market participants are waiting to get a clear price direction with some expecting ferrous scrap prices to remain under pressure due to low demand from the end-users.
The daily Davis Index for HMS attachments and Melting settled flat at Rs39,000/mt and Rs38,000/mt ex-Alang, respectively.