India: Ship-breaking scrap prices in Alang decline by INR 500/t d-o-d amid improving supply

• Scrap generation process begins on Jun-Jul vessel arrivals
• Mandi-Gobindgarh scrap prices weaken amid cautious buying

Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, declined by INR 500/t ($5/t) d-o-d to INR 32,500/t ($341/t) ex-yard. The decline came as scrap availability improved with higher generation from recently beached vessels.

Market participants said the impact of weak vessel arrivals in May is gradually fading. Only one vessel was beached during May, limiting scrap generation in the following weeks. However, material from vessels beached during the June and July arrival periods has now entered the production cycle. Vessel arrivals increased significantly from 7 vessels in June (158,573 LDT) to 14 vessels in July (108,551 LDT). With material from these vessels now entering production, scrap availability in the market is expected to improve.

Gujarat market update

Billet prices in Bhavnagar remained unchanged d-o-d at INR 41,000/t DAP, while Ahmedabad rebar prices were also stable at INR 46,200/t ex-works. The stability in finished and semi-finished steel prices provided some support to market sentiment, although buying interest remained cautious. The increase in production has reduced immediate supply tightness, while demand remains largely need-based. This has weighed on price sentiment despite relatively stable downstream steel markets in Gujarat.

Mandi market update

In Mandi Gobindgarh, a key secondary steelmaking hub, HMS (80:20) scrap prices declined by INR 100/t d-o-d to INR 35,600/t DAP. Billet prices fell by INR 150/t to INR 42,500/t, while rebar prices decreased by INR 100/t to INR 47,100/t. The broader correction indicates subdued downstream demand and cautious mill procurement, with buyers maintaining a need-based approach to inventory replenishment.

Outlook

Scrap prices are likely to remain under pressure in the near term as rising ship-breaking output improves availability. However, the extent of further correction will depend on downstream steel demand, mill operating rates, and the pace of fresh scrap procurement. Stable Gujarat billet and rebar prices could provide some support, while weaker prices in Mandi Gobindgarh may keep market sentiment cautious.

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