India: Alang ship-breaking scrap prices steady; downstream steel market offers support

• Gujarat steel market remains mixed, keeping Alang ship-breaking scrap prices stable
• Cautious buying in Mandi Gobindgarh weighs on scrap and finished steel prices

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable day-on-day on 22 July, with HMS (80:20) assessed at INR 34,000/t ($353/t) ex-yard. Stable pricing reflected balanced market conditions, as modest support from the downstream steel segment offset cautious procurement and limited trading activity across the recycling value chain.

Gujarat market update

The downstream steel market in Gujarat recorded a mixed trend, helping maintain stability in ship-breaking scrap prices. Bhavnagar billet prices declined by INR 100/t to INR 40,500/t DAP, while Ahmedabad rebar prices held steady at INR 45,600/t ex-works.

Market participants said billet demand remained moderate despite the price correction, while stable rebar prices reflected relatively consistent consumption from end-users. Scrap transactions continued on a requirement basis, with buyers avoiding aggressive stocking amid the absence of a stronger demand trigger.

Mandi market update

The secondary steel market in Mandi Gobindgarh softened as cautious buying persisted across the scrap-to-finished-steel value chain. Billet prices remained unchanged at INR 42,000/t DAP, while rebar prices slipped by INR 100/t to INR 47,000/t ex-works. HMS (80:20) melting scrap prices also edged down to INR 34,300/t DAP, reflecting weaker buying interest from steelmakers.

Traders reported subdued enquiries and selective procurement, keeping transaction volumes below normal levels. The decline in select scrap grades and the correction in finished steel prices continued to weigh on market sentiment, limiting fresh purchases despite adequate material availability.

Outlook

The Alang ship-breaking scrap market is expected to remain broadly stable in the near term, supported by steady downstream steel fundamentals in Gujarat. However, muted demand in key secondary steel markets such as Mandi Gobindgarh and continued requirement-based procurement are likely to cap any significant upward movement in scrap prices. Market participants are expected to closely monitor finished steel demand and trading activity for clearer price direction.

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