- Limited vessel arrivals keep scrap availability tight and offers firm
- Muted buying ahead of Janmashtami limits scope for price gains
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained unchanged day on day at INR 36,500/t ($385/t) ex-yard on 1 September. Prices held steady despite firmer steel prices in key consuming markets, as mills continued to procure on a need-based basis and sellers maintained firm offers amid constrained availability. Limited vessel arrivals remain a key supply-side factor, with fewer ships entering the recycling pipeline and restricting the generation of fresh scrap.
Gujarat market update
In Gujarat, Bhavnagar billet prices rose by INR 200/t day on day to INR 45,400/t DAP, while Ahmedabad rebar prices increased by INR 300/t to INR 49,900/t ex-works on 31 August. The gains in billet and rebar prices indicate improved sentiment in the regional steel market, although this has yet to translate into stronger scrap buying.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 scrap prices increased by INR 100/t day on day to INR 39,500/t DAP on 31 August. Billet prices rose by INR 150/t to INR 46,450/t, while rebar prices declined by INR 100/t to INR 51,500/t. The mixed movement in finished steel prices reflects uneven downstream demand, while tight scrap availability continues to provide a floor to prices.
Outlook
Scrap prices are expected to remain stable in the near term, with limited vessel arrivals restricting supply but subdued buying keeping the market balanced. Mills are likely to continue with need-based procurement, particularly ahead of the Janmashtami festival later this week. With working activity expected to remain low through the week, buyers are likely to avoid building inventories and keep purchases limited. As a result, the market is expected to remain range-bound, with little scope for a price increase in the near term.
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