en.Wedoany.com Reported - On June 24, scrap steel prices at the Alang shipbreaking yard in India saw a slight increase, but overall sentiment remained cautious. HMS (80:20) scrap steel prices rose by INR 200 per ton to an ex-factory price of INR 34,000 per ton. Market sources noted that this minor price uptick was primarily supported by controlled yard supply, rather than a substantial improvement in steel demand.
The downstream steel market continued to weaken, putting pressure on scrap steel prices. Billet prices in Bhavnagar fell by INR 200 per ton day-on-day to a DAP price of INR 41,500 per ton, while rebar prices in Ahmedabad dropped by INR 200 per ton to an ex-factory price of INR 46,100 per ton. The northern market also underperformed, with billet and rebar prices in Mandi Gobindgarh declining by INR 100 per ton each. Falling finished steel prices squeezed processing margins, prompting steel mills to generally adhere to procurement on demand, with low replenishment willingness. HMS scrap steel prices in Mandi Gobindgarh remained stable at a DAP price of INR 34,800 per ton, indicating a lack of robust purchasing activity in major secondary steel distribution hubs.
On the supply side, the number of vessels arriving at Alang port remained stable. Data shows that in June, seven vessels (including LNG carriers, oil tankers, container ships, and general cargo ships) were beached or awaiting dismantling at Alang. The steady arrival of vessels suggests ample potential for medium-term scrap output and maintains high operating rates at recycling yards. Despite healthy arrivals, market sources indicated that immediate scrap supply has not yet loosened enough to trigger more significant price corrections. Current prices are more driven by downstream demand from the steel industry. It is expected that scrap steel prices will remain under pressure until construction activity and end-use steel consumption recover.
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