Shipbreaking prices continued to its upward trend on Friday amid increase in demand from the local mills as well as those from the North. The daily Davis Index for 8Ani rose by Rs200/mt ($2.67/mt) to Rs30,450/mt ex-Alang.
Shipbreakers aggressively increased offers for the rolling scrap due to shortage of material at the yards. The index for 10Ani increased by Rs100/mt to Rs30950/mt ex-Alang.
Few trades were reported in the market on Friday. The index for 4Ani rose by Rs50/mt to Rs28,500/mt and the index for 12Ani rose by Rs150/mt to Rs31,200/mt ex-Alang. Transactions for both grades were reported at the index price.
Prices of steel plates rose by Rs2000-2500/mt this week as demand from end-users is gradually increasing. The daily Davis Index for 1kg plates rose by Rs200/mt to Rs26350/mt, index for 2kg plates rose by Rs300/mt to Rs29250/mt ex-Alang.
Shortage of scrap and increase in demand from the secondary mills pushed scrap prices up in Alang throughout the week. The index for HMS attachments and Melting rose by Rs150/mt to Rs26,150/mt and Rs25,150/mt ex-Alang, respectively.
Shipbreakers believe rolling scrap prices could lose its steam in coming weeks as mills have stockpiled inventories and are expected to take fewer bookings.