India: Alang ship-breaking scrap prices steady as cautious buying limits market activity

• Adequate inventories at consuming units keep procurement need-based
  
  
• Stable steel prices limit t0 generate fresh momentum in scrap market
  
  

Ship-breaking melting scrap prices in Gujarat's Alang market remained unchanged on 22 June, with buyers continuing to procure cautiously despite stability in the downstream steel segment. According to BigMint's assessment, HMS (80:20) scrap was assessed at INR 34,400/t ($364/t) ex-yard. Market sentiment remained subdued as weak end-user demand limited buying interest and curtailed the potential for price gains. Meanwhile, semi-finished and finished steel prices registered marginal corrections in the previous trading session, providing little support to scrap market fundamentals and keeping procurement activity largely need-based.

Adequate inventories curb buying interest

Market participants indicated that most consuming units are operating with sufficient raw material inventories, reducing the urgency for fresh purchases. As a result, procurement activity remained largely need-based, with buyers refraining from building additional stock positions.

The absence of immediate supply concerns has also contributed to a wait-and-watch approach among traders and steelmakers. While scrap availability remains largely balanced, the lack of strong consumption signals continues to weigh on market sentiment.

Stable steel market offers limited support

The downstream steel market remained largely steady, with semi-finished and finished steel prices showing only minor movements in the previous trading session. However, the stability in steel prices has not translated into stronger scrap demand, as mills continue to focus on inventory management amid uncertain consumption trends.

Participants noted that current steel price levels are providing limited support to scrap values, with purchasing decisions primarily driven by immediate production requirements rather than expectations of higher finished steel realizations.

Market outlook

Unless demand from steel producers improves materially or inventories tighten, buying activity is likely to stay measured, keeping price movements limited despite stability across the steel value chain.