- Weaker finished steel prices weigh on scrap demand
- HMS 80:20 prices in Mandi fall by INR 400/t d-o-d
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained unchanged d-o-d at INR 32,500/t ($341/t) ex-yard, as buying interest stayed subdued. India’s secondary steel market remained under pressure, with weaker finished steel prices and strained mill margins weighing on scrap demand. Market participants reported cautious procurement and reduced buying interest as mills focused on managing inventories and operating costs.
Gujarat market update
Bhavnagar billet prices remained stable at INR 41,000/t DAP, while Ahmedabad rebar prices declined by INR 300/t d-o-d to INR 45,900/t ex-works. Regional finished steel demand remained stable, while increased production kept prices under pressure.
Mandi market update
In Mandi Gobindgarh, a key secondary steelmaking hub, HMS (80:20) scrap prices declined by INR 400/t d-o-d to INR 35,200/t DAP. Billet prices fell by INR 350/t to INR 42,000/t, while rebar prices decreased by INR 400/t to INR 46,700/t. The decline across both scrap and steel products kept mill conversion margins under pressure.
Outlook
The near-term outlook for domestic scrap remains bearish as subdued finished steel demand and weak mill margins are likely to keep procurement need-based. Further price corrections could emerge if rebar and billet prices continue to weaken and production curtailments persist.
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