- Tight vessel pipeline limits fresh scrap generation
- Festival lull keeps Gujarat steel trade subdued
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained unchanged d-o-d for the third consecutive day, assessed at INR 36,500/t ($384/t) ex-yard on 2 September.
Prices remained range-bound despite firmer steel values in key consuming markets, as need-based mill procurement and sellers’ firm offers kept the market in a tight balance. Additionally, constrained scrap availability — underscored by limited vessel arrivals and fewer ships entering the recycling pipeline-continued to offset weak buying and limited downside risk.
A mill owner informed BigMint,”The upcoming Janmashtami festival has kept most of Gujarat’s steel market on hold, with demand effectively paused and trading activity thinning out. This will keep the market nearly closed for a few days, limiting price discovery and leaving quoted levels more indicative than transactional until normal activity resumes post-festival.”
A local source told BigMint,”Alang’s scrap pipeline remains tight, with around 30 ships still present at the yard and only 1-2 new arrivals expected in the near term. This lean inflow is keeping fresh melting-scrap generation constrained, supporting ex-yard prices.”
Gujarat market update
Yesterday (1 September), Gujarat’s steel market displayed a mixed trend: Bhavnagar billet prices eased by INR 100/t to INR 45,300/t DAP, reflecting softer semi-finished sentiment, while Ahmedabad rebar prices gained INR 200/t to INR 50,100/t ex-works on the back of firmer finished-steel demand. Overall trade activity remained muted, with no major deals reported over the past couple of days.
Mandi market update
In Mandi Gobindgarh on 1 September, HMS 80:20 prices edged up by INR 100/t d-o-d to INR 39,600/t DAP, supported by steady arrivals and firm offers. Semi-finished and finished steel segments also inched higher, with billet gaining INR 150/t to INR 46,550/t and rebar rising INR 100/t to INR 51,600/t, even as underlying demand stayed moderate to below moderate, keeping price moves more offer-led than volume-driven.
Outlook
Gujarat’s market is set to remain quiet but supported through the Janmashtami break, with prices likely to hold rather than correct. Once trading resumes, scrap prices should stay firm due to tight supply, while finished steel could see selective upward pressure if mills try to pass through higher input costs, though the pace will depend on how quickly demand returns post-festival.
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