- Prices fluctuating within INR 33,500-34,000/t band in recent weeks
- Muted steel demand, thin trading activity continue to weigh on prices
Ship-breaking melting scrap prices in Alang, Gujarat, declined by INR 500/t d-o-d on 24 July, with HMS (80:20) assessed at INR 33,500/t ex-yard. Weak buying interest from steelmakers and recyclers, coupled with limited trading activity, continued to weigh on sentiment, while participants largely stayed on the sidelines awaiting stronger demand.
Notably, over the past few weeks, prices have largely remained confined to the INR 33,500-34,000/t range, reflecting a market lacking clear directional momentum.
Gujarat market update
The downstream steel market in Gujarat remained mixed, providing limited support to the ship-breaking scrap segment.
Bhavnagar billet prices slipped by INR 100/t to INR 40,200/t DAP, while Ahmedabad rebar prices remained unchanged at INR 45,400/t ex-works. Although the decline in billet prices was marginal, subdued finished steel demand continued to restrict raw material procurement, resulting in lower scrap consumption.
Market participants noted that buying remained largely need-based, with no significant improvement in order inflows to encourage aggressive stocking.
Mandi market update
In contrast, Mandi Gobindgarh witnessed relatively stronger trading activity. Billet prices increased by INR 100/t to INR 42,100/t DAP, while HMS (80:20) melting scrap prices rose by INR 200/t to INR 34,600/t DAP. Rebar prices remained stable at INR 46,800/t ex-works.
Domestic mills actively procured scrap, while sponge iron prices also moved higher on improved local demand, supporting semi-finished steel prices and reflecting firmer sentiment in the secondary steel market.
Outlook
The Alang ship-breaking scrap market is expected to remain range-bound in the near term. Weak downstream steel demand and limited buying interest are likely to keep trading activity subdued, while the absence of any major supply-side disruptions may prevent significant price movements. Unless steel demand improves meaningfully, scrap prices are expected to continue fluctuating within the prevailing INR 33,500-34,000/t range.
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