Shipbreaking scrap prices continued to rise on Wednesday. The daily Davis Index for 4Ani Wednesday rose by Rs700/mt ($9.42/mt) to Rs27,150/mt ex-Alang.
Increased volumes of booking from Indore and Rajasthan region are pushing scrap prices high, said yard owners to Davis. The index for 6Ani rose by Rs700/mt to Rs28,150/mt ex-Alang.
Few trades for 8Ani were heard Wednesday. The daily Davis Index rose by Rs600/mt to settle at Rs29,500/mt ex-Alang with transactions at index price.
Demand from the mills in Gujarat has reduced as the region received heavy rains. Major bookings are from other regions including Mandi Gobindgarh. The index for 10Ani rose by Rs600/mt to settle at Rs30,000/mt ex-Alang, 12Ani rose by Rs600/mt to Rs30,200/mt ex-Alang. Trades were reported at the index price.
Mills are booking raw material at the current price amid expectations that major steel players are likely to increase prices by Rs1,000/mt in the next week. The index for 1kg plates increased by Rs800/mt to settle at Rs26,150/mt ex-Alang and 5kg plates rose by Rs600/mt to Rs28,650/mt ex-Alang.
Domestic ferrous scrap prices are also on the rise amid an uptick in US-origin HMS 1&2 (80:20) in Turkey by around $3.49/mt on the back of increased buying. The daily Davis Index for HMS attachments and Melting rose by Rs650/mt each to Rs25,750/mt and Rs24,750/mt respectively.
Shipbreakers have ample tonnage as a decent number of vessels have beached at Alang, lately.
($1=Rs74.2)