India: Alang scrap prices rise as Gujarat market shows mixed sentiment

• Alang scrap gains on firmer Gujarat billet prices
• Mandi remains subdued amid cautious mill buying

Alang’s ship-breaking melting scrap prices for HMS 80:20 increased by INR 200/t day-on-day (d-o-d) to INR 37,000/t ($386/t) ex-yard on 28 September. The increase was supported by firmer billet values in Gujarat, which improved replacement-cost sentiment among suppliers. However, buying interest remained selective, with mills largely focusing on immediate requirements rather than building inventories.

Market participants indicated that sellers were more comfortable holding offers at current levels following the improvement in steel prices, while buyers remained cautious about committing to larger volumes. The market continues to see a gap between supplier expectations and buyers’ workable levels, keeping spot trading activity moderate.

Gujarat market update

In Gujarat, Bhavnagar billet prices increased by INR 200/t d-o-d to INR 46,200/t DAP on 26 September, providing some support to scrap market sentiment. The firmer billet market encouraged suppliers to maintain their offer levels, although downstream demand remained a key factor limiting a stronger improvement in buying activity.

Ahmedabad rebar prices were unchanged at INR 51,200/t ex-works, indicating a more stable finished-steel market. Market participants remained watchful of actual end-user demand, with buyers generally avoiding aggressive procurement until clearer demand signals emerge.

Mandi market update

In Mandi Gobindgarh, billet prices remained stable d-o-d at INR 47,000/t DAP, while HMS melting scrap prices were unchanged at INR 38,000/t DAP. Rebar prices edged up by INR 200/t to INR 52,100/t ex-works.

Market sentiment in Mandi remained mixed. The marginal improvement in rebar prices provided some support to mills’ selling sentiment, but scrap buying continued to be largely need-based. Mills remained cautious about carrying high-cost inventories, particularly in the absence of a stronger improvement in finished-steel demand.

Outlook

Scrap sentiment is expected to remain closely tied to movements in billet and rebar prices across Gujarat and Mandi. Firmer semi-finished steel values could provide near-term support to scrap offers, but a sustained improvement in buying activity will depend on stronger finished-steel demand and increased mill procurement. For now, buyers are likely to remain selective, with immediate-need purchases dominating spot transactions.