Indian shipbreaking rolling scrap settled flat to down on Wednesday as demand from Mandi Gobindgarh slowed. The daily Davis Index for 4Ani settled flat at Rs25,950/mt($345.3/mt) ex-Alang after two consecutive days of gain.
The daily Davis Index for 10Ani declined by Rs250/mt to Rs28400/mt ex-Alang. The index for 1kg plates declined by Rs100/mt to Rs22,650/mt ex-Alang.
Shipbreakers are witnessing steady demand from the local Gujarat market, as mills resumed production after being shut due to COVID-19 pandemic. The daily Davis Index for 6Ani rose by Rs50/mt to Rs27,000/mt ex -Alang. A few trades were reported at the index price. The index for 14Ani rose by Rs50/mt to Rs29,000/mt ex-Alang on Wednesday.
Amid uncertainty over another lockdown, rolling mills are buying scrap in a limited quantity. The daily Davis Index for 2kg plates and 5kg plates settled flat at Rs26,650/mt and Rs26,950/mt ex-Alang. The index for HMS attachments and Melting increased by Rs100/mt to Rs22,450/mt and Rs21,450/mt, respectively.
Ship recyclers are purchasing vessels of higher tonnage at discounted rates. Approximately 43 vessels have beached in July and many more are yet to arrive over the week. The inventory at yards is over 443,600mt, reaching pre-COVID levels, said a shipbreaker.