- Alang scrap holds at INR 36,500/t amid tight supply
- Firm steel prices support market sentiment
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained stable day on day at INR 36,500/t ($383/t) ex-yard on 31 August, following sharp gains in recent sessions. Market sentiment remained firm as limited vessel arrivals continued to restrict fresh scrap availability and keep replacement costs elevated.
The stability in Alang came despite stronger steel prices in key consuming markets. Mills remained active in need-based procurement, while sellers maintained firm offers amid tight availability. The limited flow of vessels has become a key factor supporting the market, with fewer ships entering the recycling pipeline and consequently limiting fresh scrap generation.
Gujarat market update
In Gujarat, Bhavnagar billet prices increased by INR 1,200/t day on day to INR 45,200/t DAP. Ahmedabad rebar prices also increased by INR 300/t to INR 49,600/t ex-works on 29 August. The rise in semi-finished and finished steel prices improved replacement economics for scrap and provided underlying support to Alang values.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 prices increased by INR 1,000/t day on day to INR 39,400/t DAP on 29 August. Billet prices rose by INR 1,000/t to INR 46,300/t, while rebar prices increased by INR 1,700/t to INR 51,600/t.
Domestic mills continued to favour local scrap as imported material remained unviable due to elevated premiums. Sponge iron also remained an important alternative in the charge mix, with mills sourcing material from Durgapur, Ramgarh and Odisha.
Outlook
Alang scrap prices are expected to remain firm in the near term, supported by restricted vessel flows, tight scrap availability and stronger steel prices. Further gains, however, will depend on mill buying and downstream steel demand.
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