- Ship-breaking scrap prices decline on softer billet market conditions
- Mandi Gobindgarh faces scrap shortages and production disruptions
Ship-breaking melting scrap prices in Alang, Gujarat, declined by INR 300/t ($3/t) day on day to INR 33,000/t ($347/t) ex-yard for HMS (80:20), reflecting softer market conditions and cautious buying interest. Softer downstream steel demand and subdued mill procurement continued to limit upward price movement.
Gujarat market update
The broader Gujarat steel market also weakened, with billet prices in Bhavnagar falling by INR 200/t d-o-d to INR 41,000/t DAP. However, Ahmedabad rebar prices remained unchanged at INR 46,200/t ex-works, indicating that finished steel demand remained largely stable despite weakness in the semi-finished segment.
Mandi market update
In Mandi Gobindgarh, a key secondary steelmaking hub, HMS (80:20) scrap prices remained stable at INR 35,700/t DAP. Billet prices were also unchanged d-o-d at INR 42,500/t, while rebar prices held at INR 47,200/t. Market activity remained subdued as ongoing GST inspections and tight scrap availability disrupted procurement and around 15-20% of major mills were closed due to scrap shortages, while smaller mills and other operating units were considering production cuts.
Outlook
Near-term scrap demand is expected to remain cautious, with weak downstream steel consumption, limited scrap availability and operational disruptions likely to cap buying interest. Mills are expected to continue relying on need-based procurement and DRI to manage raw material requirements, keeping the market range-bound unless finished steel demand improves.
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