- Alang scrap extends gains as buying interest improves
- Mandi market remains cautious despite firmer steel prices
Ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 300/t ($3/t) day on day, with HMS (80:20) assessed at INR 33,300/t ($350/t) ex-yard. The increase was supported by improved buying interest from rolling mills after recent range-bound trading, though purchases largely remained requirement-driven.
Gujarat market update
In Gujarat, billet prices in Bhavnagar were unchanged at INR 41,500/t DAP, indicating balanced supply-demand conditions in the semi-finished steel segment. Meanwhile, Ahmedabad rebar prices increased by INR 300/t day on day to INR 46,200/t ex-works, reflecting improved sentiment in the finished steel market. The higher rebar prices offered support to scrap values, although buying activity remained measured.
Mandi market update
In Mandi Gobindgarh, HMS (80:20) scrap prices held steady at INR 35,700/t DAP. Billet prices were also unchanged at INR 42,600/t, while rebar prices increased by INR 200/t day on day to INR 47,400/t.
The increase in finished steel prices was primarily driven by margin pressure, as local scrap suppliers had raised prices over the past few days amid tight availability, prompting mills to pass on part of the higher input costs. Despite the increase, market participants said procurement continued to be driven by immediate requirements, with buyers remaining cautious amid subdued demand.
Outlook
The domestic ferrous scrap market is expected to remain largely rangebound in the near term. While firmer finished steel prices may continue to support scrap sentiment, sustained price gains will depend on a broader recovery in steel demand and stronger procurement by mills. Until then, buying is likely to remain need-based, limiting the scope for sharp movements in scrap prices.
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