- Lower Alang prices attract buyers from Rajasthan and Punjab
- Weak billet and rebar demand continues to cap broader scrap sentiment
Ship-breaking melting scrap prices in Alang, Gujarat, increased on 8 July, with HMS (80:20) assessed at INR 33,300/t ($350/t) ex-yard. The uptick was driven by heavy rainfall and stronger buying interest from Rajasthan and Punjab, where buyers took advantage of Alang’s relatively lower scrap prices.
Despite the price increase, trading activity remained selective as downstream steel demand continued to limit procurement across most regions.
Gujarat market update
Mandi market update
The cautious sentiment was also evident in northern India. Mandi Gobindgarh billet prices fell by INR 150/t to INR 42,100/t DAP, rebar prices declined by INR 200/t to INR 47,000/t ex-works, and HMS (80:20) melting scrap prices dropped by INR 200/t to INR 34,000/t DAP. Muted enquiries from mills and stockists kept spot activity subdued, prompting sellers to reduce offers to stimulate transactions. Rising freight and labour costs continued to compress margins, limiting the scope for deeper discounts.
Pakistan market update
Ship recycling activity at Gadani remained stable, with local steel plate prices unchanged at around PKR 195,000/t ($702/t). While recent vessel arrivals supported yard activity, Pakistan’s lower import duties on melting scrap and steel products are expected to intensify competition from imported material and pressure recycled steel demand.
Outlook
Looking ahead, post-monsoon vessel arrivals are likely to improve scrap availability. However, the pace of domestic steel demand recovery will remain the key determinant of procurement activity. Meanwhile, India’s efforts to secure European Union approval for additional ship recycling yards could strengthen its long-term position in the global ship recycling market, even as the weaker rupee raises the cost of imported vessels.
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