Shipbreaking scrap prices declined for the second consecutive day following low finished sales. Shipbreakers reduced their offers for re-rolling scrap as well as ship plates on Wednesday.
The daily Davis Index for 4Ani declined by Rs600/mt ($8.08/mt) and the index for 6Ani decreased by Rs400/mt to Rs41,000 ex-Alang.
Demand from rolling mills in Mandi Gobindgarh, a major consumer hub for shipbreaking scrap, has also dropped as finished demand continues to be significantly low.
The daily Davis Index for 10Ani and 12Ani fell by Rs600/mt to Rs43,000/mt and Rs43,400/mt ex-Alang.
Demand for ship plates remained low and drove the index for 1kg plates down by Rs400/mt to Rs37,800/mt ex-Alang. The index for 2kg plates moved down by Rs800/mt to Rs40,400/mt ex-Alang.
Traders are of the opinion that ferrous scrap prices have bottomed out and a possibility of a revival in prices is being forecast amid a shortage of material.
The daily Davis Index for HMS attachments decreased by Rs500/mt to Rs37,500/mt ex-Alang and the index for Melting declined by Rs600/mt to Rs36,200/mt ex-Alang.