- Limited vessel inflows restrict fresh scrap generation, keeping offers firm
- Weak finished steel offtake, hand-to-mouth scrap buying cap further upside
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased by INR 300/tonne (t) d-o-d to INR 35,500/t ($371/t) ex-yard on 25 August, as tight availability continued to support the market.
The rise was mainly supply-driven, with limited vessel inflows into Alang restricting fresh scrap availability. High replacement and holding costs also kept shipbreakers’ offers firm. However, subdued finished steel demand and hand-to-mouth scrap buying by rolling mills capped further price gains.
Gujarat market update
In Gujarat, Bhavnagar billet prices remained stable d-o-d at INR 43,500/t DAP, while Ahmedabad rebar prices rose by INR 200/t to INR 48,500/t ex-works on 24 August. Firm semi-finished and finished steel prices provided some support to scrap replacement economics, although demand remained uneven.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 prices increased by INR 600/t d-o-d to INR 37,700/t DAP. Billet prices rose by INR 700/t to INR 44,700/t, while rebar prices increased by INR 400/t to INR 49,300/t.
The sharper gains in Mandi indicate stronger raw-material replacement costs and improved steel price realisations, but sustained buying interest will remain crucial for the rally to broaden.
Outlook
Scrap prices are likely to remain firm in the near term as limited arrivals and high replacement costs constrain availability. However, subdued finished steel demand and cautious procurement could limit further gains unless downstream offtake improves.
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