India: Ship-breaking scrap prices fall in Alang on monsoon disruption despite tight supply

• Monsoon disruptions continue to curb yard activity across western India
• Secondary mills limit purchases amid softer finished steel prices

Ship-breaking melting scrap prices in Alang, Gujarat, declined on 31 July, with HMS (80:20) assessed at INR 33,300/t ($351/t) ex-yard. The correction was primarily driven by lower production at Alang yards as persistent rainfall disrupted cutting operations and reduced processed scrap availability. While output remained constrained, market participants indicated that the decline reflected prevailing market conditions rather than aggressive selling pressure.

Gujarat market update

In Gujarat, downstream steel sentiment softened, with Bhavnagar billet prices falling by INR 200/t day-on-day (d-o-d) to INR 40,900/t DAP and Ahmedabad rebar prices easing by INR 300/t to INR 45,900/t ex-works. The decline in finished steel prices weighed on buying interest from secondary steelmakers, although limited scrap availability prevented a sharper correction in the ship-breaking scrap market.

Procurement activity remained largely need-based as secondary steel producers refrained from building inventories amid subdued finished steel demand. Buyers continued to negotiate cautiously following the correction in billet prices, while yard owners remained reluctant to offer significant discounts due to restricted production and manageable stock levels. As a result, supply remained balanced despite weaker downstream sentiment.

Mandi market update

In northern India, Mandi Gobindgarh reflected a similar trend. Billet prices declined by INR 200/t d-o-d to INR 42,100/t, while rebar prices fell by INR 200/t to INR 46,800/t. However, HMS (80:20) melting scrap prices held steady at INR 34,900/t DAP. Market participants attributed the stability to a mild shortage of scrap, slower arrivals and logistical disruptions, which enabled local suppliers to maintain offer prices despite softer steel prices.

Outlook

The Alang ship-breaking scrap market is expected to remain range-bound in the near term. Continued monsoon-related disruptions are likely to keep scrap availability tight, while weak downstream steel demand and cautious procurement are expected to limit any meaningful upside in prices.

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