India: Alang ship-breaking scrap prices hold steady despite weakear steel market sentiment

• HMS (80:20) scrap prices remain unchanged at INR 34,500/t ex-yard
  
  
• Falling finished steel prices, cautious buying continue to weigh on market
  
  

Ship-breaking melting scrap prices in Gujarat's Alang market remained stable t d-o-d on 19 June. According to BigMint's assessment, HMS (80:20) prices were assessed at INR 34,500/t ($366/t) ex-yard. The correction was primarily driven by weaker sentiment in the finished steel market, where prices fell by INR 300/t in the previous trading session, while semi-finished steel prices also witnessed a mild decline. Cautious buying activity and subdued demand across the steel value chain continued to weigh on market sentiment.

Weak steel market dampens sentiment

Sentiment in the scrap market continued to be influenced by weakness in the finished steel segment. Finished steel prices declined by INR 300/t in the previous trading session, reflecting subdued demand from end-users and persistent pressure on steel margins. Semi-finished steel prices also recorded a mild correction, reducing cost support for scrap purchases.

The decline in steel prices prompted mills and rerollers to adopt a cautious procurement strategy, with most buyers limiting purchases to immediate production requirements rather than building inventories.

Demand uncertainty keeps buyers on the sidelines

Market activity remained subdued as participants assessed demand prospects amid seasonal challenges and slower consumption across key steel-consuming sectors. The cautious buying pattern restricted spot transactions and prevented any significant upward movement in scrap prices.

Although Alang scrap values remained unchanged, the market continued to face headwinds from weak downstream demand, softer steel prices, and restrained purchasing activity. Market participants expect scrap prices to remain closely linked to developments in the finished steel market, with any recovery in demand likely to be a key factor in determining price direction in the coming weeks.