India: Alang ship-breaking scrap stable d-o-d amid weak buying sentiment

• Need-based procurement keeps scrap prices unchanged
• Supply constraints support prices despite weak demand

Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged day on day, with HMS (80:20) assessed at INR 33,300/t ($350/t) ex-yard. The market remained balanced as recyclers largely held offers steady while purchases from secondary steelmakers continued to be driven by immediate requirements. Although scrap availability remained constrained, sluggish demand from steel mills prevented any upward movement in prices.

Gujarat market update

In Gujarat, steel market sentiment softened as billet prices in Bhavnagar declined by INR 300/t day on day to INR 41,200/t DAP, reflecting weaker buying interest from rolling mills. However, Ahmedabad rebar prices remained unchanged at INR 46,200/t ex-works, indicating limited trading activity rather than any improvement in downstream demand.

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 at INR 42,550/t, while rebar prices fell by INR 200/t day on day to INR 47,200/t. Market participants reported subdued demand across both semi-finished and finished steel segments, with mills continuing to procure scrap only to meet immediate production needs. At the same time, irregular scrap arrivals constrained raw material availability, creating a supply-side challenge without translating into stronger prices due to weak consumption.

Outlook

The domestic scrap market is expected to remain rangebound in the near term. While constrained scrap availability could lend support to prices, the absence of sustained buying interest and softer finished steel demand are likely to keep procurement need-based. Any meaningful price movement will depend on an improvement in downstream steel consumption and restocking activity by secondary mills.

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