India: Alang’s ship-breaking scrap prices decline on weak demand
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- Slow billet, finished steel sales discourage scrap inventory building
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- Scrap supply remains tight but fails to lift prices
Ship-breaking melting scrap prices in Alang declined by INR 300/tonne (t) d-o-d to INR 33,000/t ex-yard on 6 July as weak downstream steel demand continued to pressure the market. Mills restricted purchases to immediate production requirements amid comfortable scrap availability, while sluggish billet and finished steel sales discouraged inventory building.
Gujarat market update:
In Gujarat, Bhavnagar billet prices fell by INR 100/t d-o-d to INR 40,700/t DAP, while rebar prices also eased by INR 100/t to INR 46,000/t ex-works, reflecting slow buying. Lower finished steel demand continued to cap scrap procurement, with mills adopting a hand-to-mouth purchasing strategy.
Mandi market update:
Mandi Gobindgarh billet prices declined by INR 150/t to INR 42,550/t DAP, while HMS melting scrap prices dropped by INR 200/t to INR 34,600/t DAP. Rebar prices also corrected by INR 100/t to INR 47,400/t ex-works. Domestic scrap availability remained comfortable, supported by steady inflows from neighbouring states despite minor logistical disruptions.
Imported scrap buying stayed limited because of high landed costs, prompting mills to rely on domestic scrap. Meanwhile, sponge iron consumption increased, supported by supplies from Durgapur and Ramgarh, as mills continued to substitute the lower-cost raw material for imported scrap.
ONGC offers offshore drilling rig for demolition:
In the ship recycling segment, ONGC has offered the offshore drilling rig Sagar Vijay for auction under its asset rationalisation programme. The rig, located at Dighi Port, Maharashtra, is expected to attract interest from Alang recyclers.
Outlook:
Alang ship-breaking scrap prices are likely to remain under pressure in the near term as weak steel demand continues to limit procurement. Market participants expect mills to maintain need-based buying, Although scrap supply was limited, mills restricted purchases to immediate production requirements amid sluggish billet and finished steel sales, which discouraged inventory building.
