Shipbreaking scrap prices declined on Friday on diminishing demand from the local and rolling mills from North. The daily Davis Index for 8Ani declined by Rs150/mt ($2/mt) to Rs28,150/mt ex-Alang.
Shipbreakers are worried the rise in COVID-19 cases which could shut down their operation, and so, are trying to clear inventories by reducing the offers.
The indexes for 10Ani,12Ani and 14Ani declined by Rs100/mt to Rs28,450/mt, Rs28,550/mt and Rs28,550/mt, respectively, ex-Alang.
Few trades were heard of 6Ani and the index declined by Rs50/mt to Rs26,900/mt ex-Alang and transactions were reported at the index price.
The daily Davis Index for 1kg plates declined by Rs100/mt to Rs22450/mt ex-Alang and the index for 2kg plates rose by Rs50/mt to Rs26600/mt ex-Alang.
The index for HMS attachments and Melting declined further by Rs100/mt to Rs22,250/mt and 21,250/mt ex-Alang, respectively.
Ship buyers are expecting scrap tonnage of ships to increase in 2020, compared to last year’s 20.9mn dwt.
Ship owners have been sending ships for scrapping 6-12 months earlier than expected because low freight charges due to COVID-19 slowdown have decreased their margins. As a result, more container vessel and car carriers are being scrapped. On the other hand, dry bulk carrier had a good demand hence there is low availability of bulker ships for scrapping.