- Rolling mills increase scrap buying on improved steel bookings
- Tight Punjab supply lifts Mandi scrap prices, steel holds steady
Ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 200/t d-o-d on 5 August, with HMS (80:20) assessed at INR 33,000/t ($347/t) ex-yard. The increase was driven by improved procurement by rolling mills after bookings for both semi-finished and finished steel products strengthened, encouraging mills to replenish scrap inventories.
Gujarat market update
The improvement in buying activity was also reflected across the Gujarat steel market. In Bhavnagar, billet prices increased by INR 300/t d-o-d to INR 41,500/t DAP, while Ahmedabad rebar prices rose by INR 100/t to INR 45,900/t ex-works, indicating firmer sentiment across the regional steel value chain.
Mandi market update
In Mandi Gobindgarh, HMS (80:20) prices increased by INR 100/t d-o-d to INR 35,700/t DAP, supported by tightening availability. Scrap inflows from neighboring states remained limited, while ongoing GST inspections and local logistical bottlenecks continued to disrupt material movement, keeping supply under pressure.
Despite the increase in scrap prices, downstream steel prices remained largely unchanged. Billet prices were stable at INR 42,600/t, while rebar prices held steady at INR 47,200/t. Trade activity remained moderate as mills continued to procure raw materials primarily to meet immediate production requirements.
Outlook
Domestic scrap prices are expected to remain firm in the near term, supported by constrained arrivals and steady mill procurement. Market participants will closely monitor the sustainability of finished steel bookings, as any further improvement in downstream demand could provide additional support to scrap prices, while easing supply constraints may limit further upside.
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