- Scrap shortage and higher primary mill prices push offers higher
- Cautious buyers limit purchases amid inventory and coal-stock concerns
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased by INR 500/t d-o-d to INR 37,000/t ($392/t) ex-yard on 7 September 2026. The increase was driven by tight scrap availability and higher prices from primary mills. However, buying activity remained very limited as buyers resisted higher offers and stayed cautious amid inventory build-up concerns. Low coal stocks following the monsoon, coupled with high electricity demand, have also added to the pressure on mill operating costs.
Gujarat market update
In Gujarat, Bhavnagar billet prices remained stable d-o-d at INR 45,200/t, while Ahmedabad rebar prices were unchanged at INR 50,200/t ex-works on 5 September 2026. The stable finished steel market indicates limited movement in downstream demand despite firmer scrap offers.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 scrap prices decreased by INR 100/t d-o-d to INR 38,300/t, while billet prices remained largely stable at INR 46,400/t. Rebar prices also remained unchanged at INR 51,500/t ex-works. The divergent movement between Alang and Mandi reflects tighter availability in Gujarat, while buying interest across both markets remains cautious.
Outlook
Scrap prices are likely to remain firm in the near term, supported by tight availability and higher primary mill prices. However, the scope for further price increases appears limited as buyers remain reluctant to procure at higher levels. Inventory accumulation, low coal stocks and elevated electricity demand could keep mills cautious, with market participants likely to adopt a wait-and-watch approach until demand improves.
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