India: Alang’s ship-breaking scrap prices decline d-o-d amid subdued buying

• Flooding disrupts cutting operations, restricts scrap processing
• Weak mill demand, softer steel prices keep prices under pressure

Ship-breaking melting scrap prices in Alang, Gujarat, declined by INR 500/t ($5/t) d-o-d on 1 August, with HMS (80:20) assessed at INR 32,800/t ($344/t) ex-yard. Market activity remained subdued as flooding and persistent rainfall significantly slowed cutting operations across yards, reducing processing activity and delaying material movement.

Despite the tighter supply situation, demand from re-rolling mills and secondary steelmakers remained weak, resulting in limited transactions and prompting sellers to lower offers to stimulate buying. Market participants noted that the overall tone remained dull, with buyers largely adopting a wait-and-watch approach.

Gujarat market update

In Gujarat, weakness in the finished and semi-finished steel market further pressured scrap sentiment. Bhavnagar billet prices declined by INR 400/t d-o-d to INR 40,500/t DAP, while Ahmedabad rebar prices eased by INR 200/t to INR 45,700/t ex-works. The softer steel market reduced procurement interest among mills, limiting support for scrap despite slower arrivals from Alang.

Mandi market update

In Mandi Gobindgarh, billet prices remained stable d-o-d at INR 42,100/t and rebar prices were unchanged at INR 46,800/t. HMS (80:20) melting scrap prices also held steady at INR 34,900/t DAP, supported by limited scrap availability. However, weaker secondary steel sentiment and cautious purchasing kept overall trading activity subdued, while suppliers refrained from aggressive price cuts due to tight arrivals.

Outlook

The domestic HMS (80:20) scrap market is expected to remain largely stable in the near term, with price movements likely limited to around INR 200-500/t. Demand from secondary steelmakers, weather-related disruptions in Alang, and trends in downstream steel prices will continue to determine market direction.

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