- Softer billet prices in Gujarat pressures Alang scrap
- Mandi scrap prices remain stable on routine mill purchases
Ship-breaking melting scrap prices in Alang, Gujarat, declined by INR N/t ($N/t) on 17 July, with HMS (80:20) assessed at INR 33,500/t ($348/t) ex-yard. The decline was driven by subdued buying interest from secondary steelmakers. Procurement remained largely requirement-based as mills continued to adopt a cautious approach amid weak finished steel demand. Market participants said buyers continued to procure only for immediate requirements, reflecting cautious expectations for the domestic steel market.
Gujarat market update
Downstream steel prices in Gujarat were mixed. Bhavnagar billet prices edged down to INR 40,100/t DAP, indicating softer buying from rolling mills, while Ahmedabad rebar prices rose marginally to INR 45,200/t ex-works on localised demand. The divergent movement highlighted uneven consumption across the steel value chain.
Mandi market update
In Mandi Gobindgarh, billet prices held steady at INR 41,800/t DAP, while rebar prices remained unchanged at INR 46,700/t ex-works. HMS (80:20) melting scrap prices were also stable at INR 34,000/t DAP despite weaker market sentiment. Scrap purchases remained moderate, supported by routine buying from local traders, while finished steel prices were unchanged amid average operational activity.
Market participants said regular inventory replenishment supported scrap trade, with local scrap prices improving slightly despite subdued demand in other regional markets. Steelmakers expect only marginal price fluctuations in the near term as consumption remains steady but lacks strong momentum.
Outlook
The domestic scrap market is expected to remain stable to slightly weak in the near term. Requirement-based buying and average steel production are likely to prevent sharp price swings, although the absence of stronger finished steel demand may continue to limit any meaningful recovery in scrap prices.
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