- Tight scrap availability lifts Alang prices
- Higher billet costs support rebar prices
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased by INR 500/t ($5/t) day on day to INR 34,500/t ($360/t) ex-yard on 19 August. The increase was driven by low inventories across the market and a shortage of raw material, with suppliers reporting limited availability of readily deliverable material. Improved demand for finished steel has encouraged mills to replenish raw materials, adding support to scrap procurement.
The firmer scrap market comes as steel mills face higher replacement costs and maintain procurement to meet production requirements. While buying remains largely requirement-driven, the combination of constrained scrap availability and stronger finished-steel demand has improved market sentiment in Gujarat.
Gujarat market update
The firmer raw-material market was accompanied by gains in semi-finished and finished steel. Bhavnagar billet prices increased by INR 600/t d-o-d to INR 42,200/t DAP, while Ahmedabad rebar prices rose by INR 500/t to INR 46,900/t ex-works on 18 August. The increases suggest improved downstream demand compared with earlier weeks, although monsoon-related constraints continue to limit construction activity in some areas.
Mills are balancing higher input costs against downstream buying, with procurement remaining largely need-based. However, continued low inventories and grade-specific tightness are reducing room for buyers to delay purchases.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 prices increased by INR 300/t d-o-d to INR 35,900/t DAP. Billet prices rose by INR 400/t to INR 42,900/t, while rebar prices increased by INR 200/t to INR 47,600/t.
Stricter border checks and logistical bottlenecks have slowed scrap arrivals, keeping raw-material availability tight. Some mills have implemented production cuts because of weak margins and a persistent bid-offer disparity, limiting the extent to which higher input costs can be passed through.
Outlook
Gujarat’s near-term steel market outlook remains firm, with low scrap inventories, raw-material shortages and improved finished-steel demand likely to keep procurement active. However, the sustainability of further price gains will depend on scrap inflows and whether downstream demand remains strong enough to support higher steel realizations.
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