- Limited vessel inflows keep scrap supply constrained
- Firm steel prices provide support but buying remains need-based
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained stable d-o-d at INR 35,500/t ($372/t) ex-yard on 27 August, following strong gains in recent sessions. Tight scrap availability continued to support seller offers, while replacement costs remained elevated despite a correction in billet prices. Limited vessel inflows constrained fresh scrap generation, but need-based mill buying and softer billet prices impacted scrap prices.
Gujarat market update
The Gujarat steel market remained firm on 26 August, although price movements were mixed. Bhavnagar billet prices decreased by INR 300/t d-o-d to INR 43,500/t DAP, while Ahmedabad rebar prices remained stable at INR 48,800/t ex-works.
The firm finished-steel market continued to support scrap replacement costs, but measured downstream buying and limited liquidity restricted stronger price transmission into the scrap market.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 prices remained stable d-o-d at INR 37,800/t DAP. Billet prices decreased by INR 100/t to INR 44,700/t, while rebar prices remained unchanged at INR 49,600/t. Semi-finished and finished steel prices saw limited movement, reflecting cautious buying and a wait-and-watch approach among mills and traders.
Outlook
The scrap market is likely to remain firm as constrained availability and elevated replacement costs provide support. However, subdued downstream demand and cautious mill procurement could limit further upside, leaving prices sensitive to changes in steel realisations and scrap arrivals.
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