Shipbreaking scrap prices trended up amid firm demand from the local rolling mills. The supply of scrap is tight which made shipbreakers bullish.
The daily Davis Index for 4Ani rose by Rs400/mt ($5.47/mt) to Rs39,400/mt ex-Alang and the index for 8Ani rose by Rs300/mt to Rs41,500/mt ex-Alang.
Large-scale mills continued to export billets as domestic demand is yet to pick up. Many of these steelmakers were in the ferrous market to secure material to fulfill their orders. The index for 10Ani and 14Ani rose by Rs200/mt to Rs42,100/mt and Rs42,400/mt ex-Alang, respectively.
Demand in the construction sector is still low due to heavy rainfall in the nearby cities prices for ship plates declined on Thursday. The daily Davis Index for 2kg plates fell by Rs200/mt to Rs39,800/mt ex-Alang, and the index for 5kg plates declined by Rs100/mt to Rs40,600/mt ex-Alang.
Market participants expect ferrous scrap prices to improve further amid a tight supply and a rise in offers for imported HMS 1&2 (80:20) by $5/mt. Inventories with mills have depleted, and many could resume buying soon.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs38,000/mt and Rs37,000/mt ex-Alang, respectively.
($1=Rs73)