India: Alang’s ship-breaking scrap prices rise on stronger steel bookings, supply disruptions

• Gujarat steel prices rise INR 300-700/t, lifting scrap prices
• Supply disruptions tighten northern market scrap supply

Ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 300/t ($3/t) d-o-d on 4 August, with HMS (80:20) assessed at INR 32,800/t ($344/t) ex-yard. The increase was driven by stronger buying interest from rolling mills following an improvement in bookings for both semi-finished and finished steel products.

Gujarat market update

In Bhavnagar, billet prices rose by INR 700/t d-o-d to INR 40,500/t DAP, while Ahmedabad rebar prices increased by INR 300/t to INR 45,800/t ex-works. Market participants attributed the recovery to improved sales after rainfall eased across parts of Gujarat. Higher raw material costs, particularly for scrap and billets, along with firmer sentiment in northern and central India, encouraged mills to raise offers and replenish inventories, supporting scrap prices.

Mandi market update

In Mandi Gobindgarh, billet prices increased by INR 250/t d-o-d to INR 42,550/t, while rebar prices gained INR 300/t to INR 47,200/t. HMS (80:20) melting scrap prices climbed up by INR 700/t to INR 35,600/t DAP as scrap availability tightened.

The market remained supported by a combination of supply-side disruptions. Intensive GST inspections at the Punjab border continued to slow the movement of inbound scrap vehicles, reducing arrivals into Mandi Gobindgarh and Ludhiana. At the same time, the ongoing Kanwar Yatra in Uttar Pradesh forced freight operators to use longer diversion routes, increasing transit times and adding logistical challenges.

Outlook

Market sentiment is expected to remain firm in the near term, supported by improved booking activity and continued tight scrap availability. However, the sustainability of the recent price gains will depend on whether logistics disruptions persist and whether the recovery in finished steel demand gathers further momentum.

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