Shipbreaking rolling scrap prices declined on Friday amid low demand from Gujarat-based mills as well as scrap markets in the North. The daily Davis Index for 4Ani Friday fell by Rs850/mt ($11.59/mt) to Rs26,250/mt ex-Alang from Thursday.
Mills are waiting for rains to subside and end-user demand to pick up. Till then booking for ship scrap is expected to be limited. The index for 6Ani Friday declined by Rs850/mt to settle at Rs27,250/mt ex-Alang. Few trades for 8Ani were heard at the index price, which declined by Rs350/mt to Rs29,000/mt ex-Alang.
In a haste to clear scrap inventories shipbreakers lowered their offer by Rs500-800/mt on Friday. The index for 10Ani fell by Rs400/mt to Rs29,500/mt, with transactions reported at the index price.
Demand for plates has yet not picked up due to the ongoing monsoon season and a halt in construction projects in the nearby cities. The index for 1kg plates declined by Rs500/mt to Rs25,350/mt ex-Alang, 2kg plates declined by Rs550/mt to Rs26,950/mt ex-Alang.
Scrap prices also declined in line with ingot prices, the index for HMS attachments and Melting fell by Rs400/mt each to Rs25,150/mt to Rs24,150/mt ex-Alang, respectively.
Shipbreakers are expecting prices to improve in the near term as major mills are in the process of raising steel prices by Rs3,000/mt in September to pass on the increase in raw material prices.
($1=Rs73.3)