India: Alang’s ship-breaking scrap prices hold steady despite softer steel market
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- Tight scrap availability supports Alang prices
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- Bhavnagar billet prices decline by INR 600/t
Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged d-o-d on 30 July, with HMS (80:20) assessed at INR 33,800/t ($353/t) ex-yard. Despite weaker steel prices across Gujarat and north India’s secondary steel markets, constrained scrap availability from Alang ship-breaking yards continued to support prices. Buying activity remained need-based as market participants adopted a cautious stance amid softer steel demand.
Gujarat market update:
In Gujarat, Bhavnagar billet prices fell by INR 600/t d-o-d to INR 41,100/t DAP, reflecting weaker downstream demand. However, Ahmedabad rebar prices remained unchanged at INR 46,200/t ex-works, indicating relatively stable demand in the finished steel segment.
The decline in billet prices failed to exert downward pressure on ship-breaking scrap values, as limited scrap availability from Alang yards kept the market balanced. Fresh arrivals remained restricted, while sellers resisted lower offers, supported by manageable inventories and tight supply.
Procurement activity remained cautious, with secondary steelmakers purchasing only against immediate production requirements. Although the correction in billet prices reduced buying interest, the absence of supply pressure prevented any decline in Alang scrap prices.
Mandi Gobindgarh market:
The secondary steel market in Mandi Gobindgarh remained subdued. Billet prices declined by INR 150/t d-o-d to INR 42,300/t, while rebar prices eased by INR 100/t to INR 47,000/t. HMS (80:20) melting scrap prices also fell by INR 200/t to INR 34,900/t DAP as weaker buying interest weighed on transactions.
Market participants reported subdued enquiries and selective procurement, with trading activity remaining below normal levels. Softer billet and finished steel prices continued to dampen buying sentiment across the secondary steel market.
Outlook:
Alang ship-breaking scrap prices are expected to remain broadly stable over the coming trading sessions, supported by restricted scrap availability and balanced inventories at ship-breaking yards. However, subdued demand in key secondary steel markets, particularly Mandi Gobindgarh, along with continued requirement-based procurement by steelmakers, may limit any significant upside. Market participants will closely monitor finished steel demand and transaction volumes for clearer price direction.
