India: Alang melting scrap prices rise by INR 1,200/t d-o-d

• Sharp steel price gains improve buying appetite across key markets
• Stronger scrap procurement and regional enquiries signal improved market sentiment

Ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 1,200/tonne (t) d-o-d to INR 38,500/t ($403/t) ex-yard on 12 September 2026, supported by a sharp rise in steel prices across key consuming markets. The stronger steel market has improved overall sentiment and encouraged sellers to hold firm on scrap offers, with replacement costs also providing support. However, the positive sentiment has not translated into active scrap procurement.

Buyers remain largely inactive and are unwilling to chase higher offers, resulting in a wide gap between seller expectations and buyer bids. Market participants said transactions remain thin as sellers are reluctant to lower offers while buyers continue to wait for more workable levels, leaving the market firm on the offer side but subdued in terms of actual buying activity.

Gujarat market update

In Gujarat, Bhavnagar billet prices increased sharply by INR 900/t d-o-d to INR 46,500/t, while Ahmedabad rebar prices rose by INR 500/t to INR 51,200/t ex-works. The sharp movement in Gujarat has therefore provided support to scrap offers rather than triggering a broad-based recovery in procurement. Sellers are holding firm on expectations of higher replacement costs, while buyers continue to seek workable levels. This divergence between firm offers and limited buying interest is keeping actual scrap transactions subdued despite the stronger steel market.

Mandi market update

In Mandi Gobindgarh, HMS 80:20 scrap prices increased by INR 300/t d-o-d to INR 38,600/t, while billet prices rose by INR 300/t to INR 46,800/t. Rebar prices also increased by INR 200/t d-o-d to INR 51,800/t ex-works.

Both raw-material and finished-steel segments saw improved buying interest after a prolonged pause. Scrap procurement picked up noticeably, while the simultaneous rise in billet and rebar prices indicates stronger order flow and a clear improvement in market sentiment. Buyers are now showing greater willingness to procure at higher raw-material prices, supported by stronger finished-steel realisations.

Raw-material support from firmer sponge iron and scrap prices has been a key driver. Mandi-based mills are increasingly sourcing sponge iron directly from the West Bengal and Jharkhand belt to optimise charge costs. At the same time, healthy scrap arrivals into Mandi have ensured adequate liquidity across HMS and melting grades, allowing mills to participate actively without facing immediate supply constraints.

Outlook

The scrap market is expected to remain firm on the offer side in the near term, supported by sharply higher steel prices and firm seller expectations. However, actual buying activity remains limited, with a wide gap between seller offers and buyer bids. Buyers are unwilling to chase higher scrap prices at present, resulting in thin transactions despite stronger steel prices. Unless the offer-bid spread narrows and buying interest improves, the recent rise in scrap prices may struggle to translate into sustained upward momentum.