India: Alang ship-breaking scrap rises as rain disrupts cutting activity

• • Regional markets remain mixed amid cautious buying

• • Downstream steel demand continues to restrict trade activity

Ship-breaking melting scrap prices in Alang, Gujarat, increased on 9 July, with HMS (80:20) assessed at INR 33,700/t ($353/t) ex-yard. The gain was driven by persistent rainfall, which disrupted ship-cutting operations and reduced the availability of processed scrap. Scrap prices also continued to vary across individual yards depending on the availability of material, with some yards quoting higher prices while others offered lower rates.

Interstate buyers remained active, attracted by Alang’s relatively competitive prices compared with other regional markets. The tighter supply offset weak downstream steel demand and supported overall market sentiment.

Gujarat market update:

The secondary steel market, however, remained under pressure. In Gujarat, Bhavnagar billet prices declined by INR 100/t day on day to INR 40,200/t DAP, while Ahmedabad rebar prices fell by INR 200/t to INR 45,300/t ex-works. Mills continued to procure raw materials only against immediate production needs as sluggish finished steel demand limited buying activity.

Mandi market update:

A similar trend was observed in Mandi Gobindgarh. Billet prices rose by INR 200/t to INR 42,300/t DAP and HMS (80:20) melting scrap prices increased by INR 100/t to INR 34,100/t DAP. However, rebar prices eased by INR 200/t to INR 46,800/t ex-works. Trading activity remained subdued, with limited transaction volumes as competitively priced semi-finished and finished steel from neighbouring markets continued to weigh on local demand and mill pricing.

Bangladesh market update:

Meanwhile, Bangladesh’s ship recycling market strengthened as vessel arrivals resumed following the normalisation of shipping through the Strait of Hormuz. Around 550 merchant vessels, including about 200 bulk carriers and 160 tankers, are expected to exit the Gulf, supporting recycling activity in the coming weeks. Chattogram yards recently received the Zamrud (28,858 LDT) and ERGY (31,341 LDT), while Andhika Paramesti remained the latest benchmark sale at $460/LDT.

Outlook:

Looking ahead, Alang scrap prices are likely to remain supported by weather-related supply constraints, although any sustained upside will depend on a recovery in finished steel demand. Bangladesh’s recycling market is expected to remain firm as vessel arrivals improve after the monsoon.