India: Alang ship-breaking scrap prices rise on strong domestic steel sentiment
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- Steel prices strengthen in Gujarat and Mandi Gobindgarh, support scrap prices
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- Tighter availability keeps scrap market sentiment firm amid cautious buying
Ship-breaking melting scrap prices in Alang, Gujarat, increased d-o-d on 28 July, with HMS (80:20) assessed at INR 33,800/t ($353/t) ex-yard. The increase followed firmer domestic steel prices in key consuming regions, encouraging recyclers to hold offers higher as market sentiment improved. However, buying remained largely requirement-based, indicating that the recovery was supported more by improving price expectations than by aggressive restocking.
Gujarat market update:
Gujarat’s secondary steel market recorded higher prices across finished products. Bhavnagar billet prices increased by INR 900/t d-o-d to INR 41,600/t DAP, while Ahmedabad rebar prices rose by INR 300/t to INR 46,000/t ex-works. Market participants attributed the gains to selective purchases and improved sentiment rather than a broad-based revival in consumption. Buyers continued to procure cautiously, awaiting clearer signals from downstream demand before building larger inventories.
Mandi market update:
Mandi Gobindgarh witnessed stronger trading activity, with demand improving across the secondary steel value chain after active weekend business. Billet prices increased by INR 200/t to INR 42,500/t, rebar prices gained INR 400/t to INR 47,300/t, and HMS (80:20) scrap rose by INR 300/t to INR 35,100/t. Scrap-to-finished steel prices advanced by INR 200-400/t as tighter scrap availability coincided with stronger buying interest.The source added that limited scrap arrivals and continued strict GST inspections constrained raw material availability, reinforcing upward pressure on scrap prices.
Outlook:
The domestic secondary steel market has entered the week on a firm footing, with improved finished steel realisations supporting scrap demand across key markets. While stronger sentiment and supply constraints are likely to keep scrap prices supported in the near term, the sustainability of the uptrend will depend on whether downstream steel consumption strengthens enough to translate selective buying into sustained procurement.
