- Prices surge d-o-d amid fresh trades post Raksha Bandhan
- Billet, rebar prices in Gujarat, Mandi Gobindgarh increase
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased sharply by INR 1,000/t d-o-d ($10/t) to INR 36,500/t ($383/t) ex-yard on 29 August, taking the w-o-w gain to INR 1,200/t.
The rise followed in the previous session on 28 August, due to the Raksha Bandhan festival. Scrap prices had increased by INR 500/t to INR 35,500/t in the previous session, with trades heard at the revised levels. Market activity was subdued during the festival, but fresh trades thereafter supported a further increase in prices.
Market participants said prices remain highly volatile, with limited scrap availability and firm replacement costs influencing higher seller offers. However, the outlook for finished steel demand remains relatively unclear, with mills closely monitoring movements in billet and finished-steel prices before making fresh purchases.
Gujarat market update
In Gujarat, Bhavnagar billet prices increased by INR 500/t d-o-d to INR 44,400/t DAP, with a w-o-w increase of INR 1,000/t. The rise in billet prices has strengthened scrap replacement economics and provided further support to scrap offers.
Ahmedabad rebar prices increased by INR 500/t d-o-d to INR 49,300/t ex-works on 27 August, gaining INR 1,400/t w-o-w. The firm movement in finished steel supported the broader market, although buying remains cautious at elevated prices.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 prices increased by INR 600/t d-o-d to INR 38,400/t DAP on 27 August. Billet prices also increased by INR 600/t to INR 45,300/t, while rebar prices rose by INR 300/t to INR 49,900/t.
The simultaneous increase in scrap, billet, and rebar prices points to a firm regional steel market. However, the sharp price movements are keeping buyers cautious and limiting procurement to immediate requirements.
Outlook
The domestic scrap market is likely to remain volatile in the near term. The scrap markets in Mandi Gobindgarh and Gujarat are yet to open, and price indications from these regions will be closely watched. Firm billet and rebar prices are providing support to scrap valuations, while limited availability is keeping seller offers firm. However, elevated prices could weigh on mill buying and keep transactions largely need-based. Further movement will depend on scrap availability, mill procurement, and the sustainability of higher finished steel prices.
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