- Billet and rebar prices lifted replacement-cost sentiment
- Higher input costs supported firmer scrap offers
Alang’s ship-breaking melting scrap prices for HMS 80:20 increased by INR 1,000/t day-on-day (d-o-d) to INR 39,500/t ($412/t) ex-yard on 30 September. The sharp increase was driven by firmer semi-finished and finished steel prices, higher raw material replacement costs and tighter near-term material availability.
Supplier sentiment strengthened as billet and rebar prices rose across key consuming centres. Higher coal costs and firmer prices of other metallic inputs further increased mills’ replacement costs, supporting firmer scrap offers.
Gujarat market update
In Gujarat, Bhavnagar billet prices increased by INR 1,000/t d-o-d to INR 48,200/t DAP on 29 September, while Ahmedabad rebar prices rose by INR 900/t to INR 53,000/t ex-works.
The sharp rise in finished and semi-finished steel values strengthened replacement-cost expectations and encouraged suppliers to hold firm on scrap offers. Market participants reported stronger price expectations across the raw material chain, with sellers showing less willingness to negotiate at earlier levels.
Mandi market update
In Mandi Gobindgarh, billet prices increased by INR 500/t d-o-d to INR 48,500/t DAP, while HMS melting scrap prices rose by INR 700/t to INR 39,700/t DAP. Rebar prices also increased by INR 300/t d-o-d to INR 53,500/t ex-works.
Scrap-to-finished-steel prices maintained a positive trend during the first half of today’s trading session. However, buying interest was subdued compared with the previous day, while scrap procurement remained limited, indicating cautious market participation despite firm price levels.
Outlook
Scrap sentiment is expected to remain supported by firmer finished and semi-finished steel values and higher replacement costs. However, the sustainability of the rally will depend on mill buying interest and whether higher raw material offers translate into improved downstream demand.
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