India: Alang ship-breaking scrap prices ease on weaker steel market conditions

• Melting scrap prices drop by INR 200/t d-o-d
• Billet, rebar prices decline in Gujarat, Mandi Gobindgarh

Alang’s ship-breaking melting scrap prices (HMS 80:20) fell by INR 200/t d-o-d to INR 36,300/t ($378/t) ex-yard on 25 September, as softer steel prices across key markets weighed on sentiment.

The decline in Alang followed weakness in both billet and finished steel prices in Gujarat and Mandi Gobindgarh, indicating subdued market conditions and limited scope for scrap price gains in the near term.

Gujarat market update

In Gujarat, Bhavnagar billet prices edged down by INR 100/t d-o-d to INR 45,200/t DAP on 25 September. Ahmedabad rebar prices also declined by INR 100/t to INR 51,200/t ex-works.

The marginal corrections in billet and rebar prices point to restrained buying interest in the regional steel market, keeping raw-material procurement cautious.

Mandi market update

The decline was more pronounced in Mandi Gobindgarh, where billet prices fell by INR 350/t d-o-d to INR 46,500/t DAP. HMS melting scrap prices eased by INR 400/t to INR 37,500/t DAP.

Rebar prices in the market also corrected by INR 400/t to INR 51,800/t ex-works, reflecting continued pressure across both raw materials and finished steel.

Outlook

With billet and rebar prices weakening across major secondary steel markets, scrap prices are likely to remain under pressure in the near term. Buyers are expected to maintain a cautious procurement approach and focus on need-based purchases, particularly while finished steel demand remains subdued.

The direction of scrap prices will depend largely on billet movement, rebar demand and mill buying appetite in the coming sessions.