Indian shipbreaking prices rose by Rs300-400/mt ($4-5.3/mt) on Friday, amid demand from the local mills. The daily Davis Index for 8Ani rose by Rs350/mt to Rs27,100/mt ex-Alang. A few transactions were reported at the index price.
Prices of finished steel in Indian market has increased giving a push to the prices for semis and raw materials up. On the other hand, imported ferrous scrap prices rose this week by $4-5/mt.
Shipbreakers are clearing their piled-up inventories as few vessels are still at the yards yet to be dismantled.
The daily Davis Indexes for 10Ani increased by Rs300/mt to Rs27350/mt, 12 Ani increased by Rs150/mt to Rs27450/mt, 14Ani rose by Rs150/mt to Rs27550/mt ex-Alang.
Mills are trying to ramp up production as Indian finished steel production in April-June period witnessed a slump of 51.2pc compared to previous year on account of lockdown and weak demand from the end users. In order to overcome the losses due to shutdown of units, mill owners are focusing more on exports which have risen by 145.3pc in the period from a year ago.
Demand for plates also picked up, gradually pushing its prices up. The daily Davis Index for 1kg plates increased by Rs400/mt to Rs23,250/mt ex-Alang. The index for 2kg plates rose by Rs350/mt to Rs26,300/mt ex-Alang and transactions for 2kg plates were heard at the index price.
Shipbreakers are expecting scrap prices to improve in near term as availability of local scrap is low, while demand from the end users is gradually increasing.
The index for HMS attachments and Melting rose on Friday by Rs300/mt to Rs22,950/mt and Rs22,000/mt ex-Alang, respectively.