India: Alang ship-breaking scrap prices steady amid weak western demand

• HMS (80:20) remains stable at INR 34,000/t ex-yard
• Need-based procurement limits fresh buying despite stable recycler offers

Ship-breaking melting scrap prices in Alang remained unchanged on 27 June, with HMS (80:20) assessed at INR 34,000/t ex-yard, as sluggish downstream steel demand in western India continued to weigh on buying activity. However, relatively firmer steel market conditions in northern India provided sufficient support for recyclers to maintain offer levels, preventing any downward correction in scrap prices.

In Gujarat, the ferrous value chain remained under pressure. Billet prices in Bhavnagar declined by INR 100/t day-on-day (d-o-d) to INR 41,100/t DAP, reflecting weak procurement from rerollers and fabricators. Rebar prices in Ahmedabad also fell INR 100/t d-o-d to INR 46,000/t ex-works, amid subdued construction activity and limited improvement in finished steel offtake. The softer finished steel market continued to discourage aggressive scrap purchasing, with mills largely restricting procurement to immediate production requirements.

In contrast, the northern market remained relatively resilient. Billet prices in Mandi Gobindgarh held steady at INR 42,900/t DAP, while rebar prices slipped INR 100/t d-o-d to INR 47,400/t ex-works. HMS scrap prices, however, increased INR 100/t to INR 35,100/t DAP, supported by relatively healthier buying interest. Trading activity remained confined to a narrow range throughout the week, with buyers and sellers adopting a cautious stance amid uncertainty over finished steel demand. Transactions were largely need-based, while suppliers resisted lowering offers, helping keep scrap prices broadly stable.

The firmer pricing environment in northern India helped underpin sentiment in Alang despite continued weakness in western markets. Recyclers largely maintained their offer levels, supported by expectations that demand from northern consumers would continue to absorb available material and offset slower buying from Gujarat-based mills.

Outlook

Market participants said procurement remained strictly need-based, with buyers avoiding inventory accumulation due to continued uncertainty surrounding finished steel demand. In the absence of a meaningful recovery in construction activity or downstream steel consumption, trading volumes are expected to remain moderate, with recyclers focusing on preserving price stability rather than pursuing higher sales volumes.