India: Alang ship-breaking scrap prices decline as weak steel demand limits buying

• Alang scrap slips as weak steel demand persists
  
  
• June ship arrivals improve sharply despite subdued domestic scrap demand
  
  

Ship-breaking melting scrap prices in Alang declined by INR 500/t day on day to INR 33,300/t ex-yard on 4 July, as subdued downstream steel demand and adequate scrap availability continued to weigh on market activity. Buyers limited purchases to immediate requirements, while mills refrained from aggressive procurement amid weak billet and finished steel consumption.

Gujarat market update

In Gujarat, billet prices in Bhavnagar fell by INR 200/t d-o-d to INR 40,700/t DAP, reflecting sluggish buying from re-rollers and weak finished steel demand. Rebar prices remained unchanged at INR 46,100/t ex-works, indicating that mills were reluctant to adjust finished steel prices despite softer raw material values. The weak consumption environment continued to discourage higher scrap purchases, keeping procurement strictly hand-to-mouth.

Mandi market update

Northern markets also remained under pressure. In Mandi Gobindgarh, billet prices declined by INR 150/t d-o-d to INR 42,700/t DAP, while HMS melting scrap prices eased by INR 200/t to INR 34,800/t DAP. Rebar prices held steady at INR 47,500/t ex-works. Scrap availability remained comfortable, supported by healthy inflows from neighbouring states, although minor logistics disruptions caused isolated delivery delays. Imported scrap buying continued to remain limited as elevated landed costs reduced its competitiveness against readily available domestic material.

Ship arrival update

Ship recycling activity improved during June despite subdued domestic scrap demand. A total of six vessels, with a combined lightweight displacement tonnage (LDT) of more than 152,000 tonnes, were beached at Alang during the month. By contrast, only one vessel, with an LDT of 8,320 tonnes, was beached during May, indicating a significant improvement in vessel arrivals and feedstock availability for recyclers.

Outlook

Alang ship-breaking melting scrap prices are expected to remain under pressure over the coming weeks as weak billet and finished steel demand continues to limit scrap procurement. Although improved vessel arrivals are expected to keep domestic scrap availability comfortable, mills are likely to continue purchasing only against immediate production requirements until downstream steel demand shows a sustained recovery.