Prices for melting scrap from shipbreaking rose on February 14, 2025, to ₹300/t in Alang, Gujarat, from the previous day's ₹ 290/t. HMS (80:20) has been priced at ₹33,300/t ($368/t) delivered overland from the yard under market assessment. The rise in prices is attributed to increased business activity in the semi-finished and finished steel markets midweek, which has increased mills' buying commitments. The increase in bookings has also led to new purchases of scrap material. Suppliers were also able to increase their prices following the increase in purchases for melting scrap, due to the expected continuation of demand from rerollers and producers using induction furnaces.

Outlook:

The short-term outlook for the upstream steel sector looks positive, on account of increased downstream demand for steel and an increase in interest from buyers. If the trend of increased finished steel sales continues, then scrap prices will likely receive further small price increases. However, whether or not the continued rise of scrap price will be sustained hinges on whether the offtake of steel is sustained and production levels of mills remain stable. Any sort of slowdown in demand for finished steel or pressure on margins will limit the extent of any future price increases.