India: Alang ship-breaking scrap prices decline INR 300/t d-o-d on weak steel market sentiment

• Re-rollable scrap prices also softened by around INR 200-600/t
• Only around 8-10 vessels currently available for recycling at Alang

India’s ship-breaking melting scrap prices in Alang, Gujarat, declined on 18 June 2026 as weakness in the domestic steel market weighed on sentiment. According to BigMint’s assessment, HMS (80:20) melting scrap fell by INR 300/t day-on-day to INR 34,500/t ($365/t) ex-yard. Re-rollable scrap prices also softened by around INR 200-600/t over the same period. The correction follows a downturn in semi-finished and finished steel prices, prompting buyers to seek lower scrap offers despite continued supply constraints.

Steel market weakness impacts scrap demand

Market sentiment remained cautious as softer trends across the steel value chain reduced purchasing interest. The decline in semi-finished and finished steel prices affected scrap procurement decisions, with consumers limiting purchases to immediate requirements. As a result, both melting and re-rollable scrap segments witnessed price corrections, although overall buying activity remained stable.

A market participant noted that buyers were reluctant to build inventories amid uncertain steel market conditions, preferring hand-to-mouth procurement until clearer price direction emerges.

Vessel scarcity limits downside

Despite the price decline, supply-side fundamentals continue to provide support. Availability of recyclable vessels remains extremely limited, with only around 8-10 vessels currently available for recycling at Alang, according to industry participants.

Strong freight earnings have encouraged shipowners to keep vessels operational for longer periods, while increased spending on repairs and vessel life-extension programmes has delayed demolition activity. Consequently, vessel arrivals remain near historic lows, restricting fresh scrap generation and keeping inventories tight across recycling yards.

The ongoing shortage of recyclable vessels has prevented a sharper correction in scrap prices and continues to underpin market fundamentals despite weaker steel demand.

Outlook

Alang ship-breaking scrap prices are likely to remain under mild pressure in the near term if weakness in semi-finished and finished steel markets persists. However, extremely tight vessel availability and constrained scrap generation are expected to limit downside risks, providing continued support to the market and preventing any significant price correction.