Shipbreaking re-rolling scrap prices in Alang rose on Thursday as dismantling activities remained limited to a handful of yards due to extremely limited supply of oxygen cylinders.
The daily Davis Index for 4Ani rose by Rs250/mt ($3.38/mt) to Rs40,000/mt ex-Alang and the index for 8Ani rose by Rs350/mt to Rs41,100/mt ex-Alang.
Demand from the local rolling mills are firm as they are focusing on export markets as lockdown has hit domestic demand.
The indexes for 10Ani,12Ani and 14Ani continued to remain unchanged at Rs39,800/mt, Rs40,300/mt and Rs40,500/mt ex-Alang, respectively, as major yards in Alang have shut down temporarily.
Shipbreaking plates prices were also up on shortage, with the daily index for 1kg plates rising by Rs200/mt to Rs39,700/mt ex-Alang and the index for 5kg plates increasing by Rs350/mt to Rs41,100/mt ex-Alang.
Mills were seen buying on a need basis rather than stocking up inventories. The daily Davis index for HMS attachments and Melting declined by Rs100/mt each to Rs39,300/mt and Rs38,300/mt ex-Alang, respectively.
Traders are optimistic about domestic ferrous scrap prices as international offers are increasing and freight rates are also high.