- Steel markets firm across Gujarat and Mandi
- Buyers remain cautious amid limited trade activity
Alang’s ship-breaking melting scrap prices for HMS 80:20 remained unchanged day-on-day (d-o-d) at INR 39,000/t ($405/t) ex-yard on 3 October. India recorded two ship-recycling vessels totalling 37,482 LDT in September, pointing to limited recent vessel inflows. Despite firmer steel prices in Gujarat and Mandi, Alang buyers remained hesitant to accept higher offers, with a wide bid-offer gap keeping trade activity limited.
Alang’s ship-recycling output typically comprises around 80-90% rerollable plate and about 10% melting scrap, making plate realisations an important factor in overall vessel economics.
Gujarat market update
In Gujarat, Bhavnagar billet prices increased by INR 800/t d-o-d to INR 48,300/t DAP on 1 October, while Ahmedabad rebar prices rose by INR 100/t to INR 53,300/t ex-works.
Firmer semi-finished and finished steel prices supported replacement-cost sentiment. However, the increase did not translate into higher Alang scrap prices, as the bid-offer gap remained wide and buyers stayed cautious on fresh procurement.
Mandi market update
In Mandi Gobindgarh, billet prices increased by INR 600/t d-o-d to INR 48,800/t DAP on 1 October. HMS melting scrap prices also rose by INR 700/t to INR 40,000/t DAP, while rebar prices increased by INR 500/t d-o-d to INR 53,700/t ex-works.
The rise across scrap, billet and rebar indicated firmer replacement costs in the Mandi market. However, buying remained need-based, with the wider gap between supplier offers and mill bids keeping market activity selective.
Outlook
Alang scrap sentiment is likely to remain balanced in the near term. Firmer billet and rebar prices in Gujarat and Mandi are supporting replacement costs, but the wider bid-offer gap and cautious procurement could limit further price gains unless buying interest improves.
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