India: Alang ship-breaking scrap market stays range-bound amid monsoon disruptions

• • Monsoon keeps scrap supply constrained

• • Cautious buying weighs on market

Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged on 14 July, with HMS (80:20) assessed at INR 34,000/t ($354/t) ex-yard, as supply constraints continued to balance weak demand from secondary steelmakers.

Persistent monsoon rainfall continued to disrupt ship-cutting operations across Alang’s recycling yards, slowing the processing of melting scrap and limiting material availability. Market participants said reduced cutting activity kept inventories under control, preventing any downward price correction despite subdued procurement by secondary steel mills. Buyers largely restricted purchases to immediate requirements amid weak finished steel demand, while recyclers avoided aggressive discounts due to limited replenishment of processed scrap.

Gujarat market update:

The steady trend in Alang contrasted with mixed movements in Gujarat’s downstream steel market. Billet prices in Bhavnagar declined by INR 400/t to INR 39,600/t DAP, reflecting soft demand from rolling mills. In contrast, Ahmedabad rebar prices remained stable at INR 45,000/t ex-works, as sluggish construction activity and cautious distributor buying kept trading volumes subdued. Balanced market fundamentals discouraged fresh positions, with most participants preferring to wait for clearer demand signals.

Mandi market update:

Market sentiment in northern India also remained weak. Billet prices in Mandi Gobindgarh fell to INR 41,800/t DAP, while HMS (80:20) melting scrap eased to INR 33,800/t DAP. Rebar prices also softened to INR 46,600/t ex-works. Traders attributed the decline to slow finished steel offtake, liquidity constraints and cautious scrap procurement, with mills limiting purchases to immediate production needs. The absence of demand recovery continued to weigh on overall trading activity.

Outlook:

The Alang ship-breaking scrap market is expected to remain stable in the near term. Monsoon-related disruptions are likely to keep processed scrap supply tight, while weak finished steel demand may continue to limit buying interest. Unless either supply conditions improve or downstream steel consumption strengthens, prices are expected to remain range-bound.