India: Alang ship-breaking scrap prices steady as supply tightness offsets cautious steel demand
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- Billet prices rise in Gujarat, Mandi amid slight improvement in trade
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- Mandi scrap prices fall despite GST inspection-driven supply shortages
Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged on 15 July, with HMS (80:20) assessed at INR 34,000/t ($354/t) ex-yard. The market remained supported by constrained processed scrap availability, which continued to offset subdued buying interest from secondary steelmakers. While demand remained largely requirement-based, limited supply prevented any downward pressure on prices, keeping market fundamentals balanced.
Gujarat market update:
Downstream steel prices in Gujarat strengthened despite measured trading activity. Bhavnagar billet prices rose by INR 400/t to INR 40,000/t DAP, while Ahmedabad rebar prices increased by INR 100/t to INR 45,100/t ex-works. Market participants attributed the gains to improved sales of finished and semi-finished steel at prevailing prices, prompting suppliers to raise spot offers in anticipation of firmer market conditions. However, construction activity remained subdued and distributor buying was largely need-based, keeping overall trading volumes under check.
Mandi market update:
In Mandi Gobindgarh, billet prices edged up to INR 41,900/t DAP and rebar prices increased to INR 46,700/t ex-works, despite weak underlying market sentiment. HMS (80:20) melting scrap prices, however, eased to INR 33,800/t DAP as buying remained subdued. At the same time, a mild scrap shortage and ongoing GST inspections prompted suppliers to quote higher offers, although cautious buying by mills limited deal activity, leading to producers to reduce prices. Weak finished steel demand continued to restrain procurement, keeping overall market sentiment subdued.
Outlook:
Prices may remain largely stable in the near term. Tight processed scrap availability at Alang and limited domestic scrap supply are expected to provide price support, while weak downstream steel demand is likely to cap significant gains. Market direction will depend on the pace of construction activity, secondary steel consumption, and the availability of domestic scrap in the coming weeks.
