Shipbreaking scrap prices in Alang were flat to up on Friday as demand from the rolling mills was firm though fear of COVID-19’s impact persists among mill owners and shipbreakers. Around 80pc laborers working in Alang are migrants and are returning to their families as lockdown measures have been put into place, which would slowdown the production in Alang for a while.
The daily Davis Indexes for 6Ani and 8Ani settled flat a Rs37,000/mt ($495/mt) and Rs38,100/mt ex-Alang, respectively, with limited trades. The indexes for 10Ani and 12Ani also settled unchanged on Friday to Rs38,600/mt and Rs39,000/mt ex-Alang, respectively.
International offers for ferrous scrap were firm amid less availability. On the other hand, rising freight rates and shortage of containers is creating problems for the Indian scrap importers. Thus, mills are preferring to procure domestic scrap over imported.
The daily Davis Index for 14Ani rose by Rs100/mt to Rs39,200/mt ex-Alang and the index for 4Ani rose by Rs100/mt to Rs36,500/mt ex-Alang.
Demand is firm from the construction and automobile sector and suppliers increased their offers for the ship plates. The daily Davis Index for 1kg plates rose by Rs300/mt to Rs33,700/mt ex-Alang and the index for 5kg plates settled flat at Rs37,600/mt ex-Alang.
Though domestic ferrous prices weakened due to the fear of the lockdown, mills must procure raw material to fulfil the demand from end-users. So, prices might improve in the immediate future.
The daily Davis Index for HMS attachment and Melting rose by Rs200/mt each to Rs33,500/mt and Rs32,500/mt ex-Alang, respectively.