India: Alang ship-breaking scrap market steadies as supply constraints offset weak demand

• • Recyclers hold offers amid tight availability

• • Downstream markets remain under pressure

Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged on 13 July, with HMS (80:20) assessed at INR 34,000/t ($355/t) ex-yard, as tight supply offset subdued demand from secondary steelmakers.

Persistent monsoon rainfall continued to slow ship-cutting operations across Alang’s recycling yards, restricting the availability of processed melting scrap. Market participants said reduced cutting activity kept supply under control, preventing any price correction despite muted procurement by secondary mills. Buyers largely restricted purchases to immediate requirements amid weak finished steel demand, while recyclers refrained from aggressive price cuts due to limited inventory replenishment.

Gujarat market update:

The stability in Alang scrap prices contrasted with mixed trends in Gujarat’s downstream steel market. Billet prices in Bhavnagar remained steady at INR 40,000/t DAP, supported by limited spot availability. Meanwhile, Ahmedabad rebar prices were unchanged at INR 45,000/t ex-works as construction activity remained sluggish and buying interest from distributors stayed restrained. The balanced supply-demand situation kept market participants on the sidelines, resulting in limited trading activity.

Northern market update:

In northern India, sentiment remained weak as cautious buying and slow finished steel offtake weighed on prices. Billet prices in Mandi Gobindgarh eased to INR 41,850/t DAP, while HMS (80:20) melting scrap prices slipped to INR 34,000/t DAP. Rebar prices also softened to INR 46,700/t ex-works.

Market participants said slower sales and rising inventories continued to squeeze mill margins, prompting producers to adjust prices to stimulate demand. However, procurement remained largely need-based, reflecting limited confidence among buyers and the absence of meaningful downstream restocking.

Outlook:

Alang’s ship-breaking scrap market is expected to remain stable in the near term as monsoon-related disruptions continue to constrain processed scrap supply. However, any sustained price movement will depend on a recovery in finished steel demand and stronger procurement by secondary mills, as weak consumption continues to cap market momentum.