India: Alang ship-breaking scrap prices unchanged for fourth consecutive day
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- Rain-hit operations tighten scrap supply in Alang
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- Weak steel demand offsets support from limited scrap availability
Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged for the fourth consecutive day on 23 July, with HMS (80:20) assessed at INR 34,000/t ex-yard. Market sentiment remained balanced as rain continued to disrupt ship-cutting operations, limiting the availability of processed scrap. At the same time, healthy buying interest from local consumers helped absorb available material, preventing any downward pressure on prices.
Gujarat market update:
The downstream steel market in Gujarat remained mixed, providing little direction to the scrap market. Bhavnagar billet prices declined by INR 200/t to INR 40,300/t DAP, while Ahmedabad rebar prices also eased by INR 200/t to INR 45,400/t ex-works. Despite weaker finished steel prices, restricted scrap supply from Alang yards kept ship-breaking scrap prices stable, with buyers continuing procurement on a requirement basis.
Mandi market update:
The secondary steel market in Mandi Gobindgarh remained subdued as cautious purchasing persisted across the scrap-to-steel value chain. Billet prices were unchanged at INR 42,000/t DAP, while rebar prices fell by INR 200/t to INR 46,800/t ex-works. HMS (80:20) melting scrap prices edged up to INR 34,400/t DAP, extending the region’s largely stable pricing trend over the past four days.
Market participants reported low-to-moderate finished steel offtake, which continued to limit aggressive scrap procurement. However, tight availability of domestic scrap prevented any significant correction, keeping prices broadly supported despite weak demand fundamentals.
Outlook:
The Alang ship-breaking scrap market is expected to remain stable in the near term. Continued monsoon-related disruptions are likely to constrain scrap processing and support supply fundamentals, while subdued downstream steel demand may limit any meaningful price gains. Unless finished steel consumption improves or scrap availability increases materially, market participants expect prices to trade within the current range.
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