India: Alang ship-breaking scrap steady amid stronger northern steel market

• HMS (80:20) holds at INR 34,000/t ex-yard
  
  
• Weak Gujarat steel demand limits scrap buying
  
  

Ship-breaking scrap prices in Alang remained unchanged on 26 June, with HMS (80:20) assessed at INR 34,000/t ex-yard, as weak downstream demand in western India continued to weigh on buying interest. However, relatively firmer steel market conditions in northern India provided sufficient support for recyclers to maintain offer levels, preventing any downward correction in scrap prices.

In Gujarat, the ferrous value chain remained under pressure. Billet prices in Bhavnagar declined by INR 100/t day-on-day (d-o-d) to INR 41,200/t DAP amid weak procurement from rerollers and fabricators. Rebar prices in Ahmedabad were unchanged at INR 46,100/t ex-works, reflecting subdued construction demand and limited improvement in finished steel offtake.

By contrast, northern markets displayed greater resilience. Billet prices in Mandi Gobindgarh remained stable at INR 42,900/t DAP, while rebar prices held at INR 47,500/t ex-works on balanced buying activity. HMS scrap prices in the region softened marginally by INR 100/t to INR 35,000/t DAP, suggesting comfortable raw material availability without weakening overall market sentiment.

The relatively stronger pricing environment in the north helped sustain confidence among Alang recyclers despite sluggish conditions in western India. Market participants indicated that procurement remained strictly need-based, with buyers avoiding large inventory build-ups due to uncertainty over finished steel demand.

Pakistan market

Pakistan's ship recycling market remained firm during the week, supported by domestic steel plate prices of around PKR 195,000/t ($701/t) and improved business confidence following the easing of regional geopolitical tensions. However, participants expect plate prices to soften in the coming weeks as trade flows normalise. Recyclers, who had been paying premiums to secure vessels amid recent supply tightness and geopolitical uncertainty, anticipate lower procurement costs as vessel availability gradually improves.

Outlook

Alang's ship-breaking scrap market is expected to remain stable but subdued over the next few trading sessions. Weak downstream demand in western India is likely to keep procurement largely need-based, while firmer steel prices in northern markets should continue to provide downside support. In Pakistan, improving vessel availability and easing plate prices may gradually reduce recyclers' input costs, potentially softening ship recycling sentiment.