India: Alang melting scrap prices remain stable despite subdued trade

• Firm Gujarat steel prices support seller offers, but buying remains limited
• Weak Mandi sentiment, heavy rainfall weigh on regional trade activity

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d at INR 38,500/t ($402/t) ex-yard on 15 September 2026. Despite firm steel prices across key consuming markets, scrap buying remained subdued, with buyers largely unwilling to chase higher offers. A wide gap between seller expectations and buyer bids continues to limit spot transactions. Sellers are holding offers at current levels, while buyers remain focused on securing material at workable prices, keeping the market firm on the offer side but subdued in terms of actual trade.

Gujarat market update

In Gujarat, Bhavnagar billet prices increased by INR 300/t d-o-d to INR 47,500/t on 14 September, while Ahmedabad rebar prices rose by INR 200/t to INR 52,100/t ex-works.

Despite the firm movement in billet and rebar prices, trading activity remained limited in Gujarat on the previous day. Softer steel prices in Mandi Gobindgarh, coupled with heavy rainfall, weighed on market participation and kept buyers cautious. Fresh enquiries and spot transactions remained limited, while logistical disruptions caused by rainfall further affected market activity.

Firm steel prices continued to support seller expectations for scrap, but the wide gap between seller offers and buyer bids limited trading activity in scrap.

Mandi market update

In Mandi Gobindgarh, HMS 80:20 scrap prices eased by INR 100/t d-o-d to INR 39,900/t, while billet prices declined by INR 100/t to INR 47,900/t. Rebar prices remained stable d-o-d at INR 53,200/t ex-works.

Market participants adopted a wait-and-watch stance after prices across the secondary steel value chain, including sponge iron, ingot and scrap, rose sharply over the past few days. The recent gains prompted some profit-booking and delayed fresh procurement, contributing to the softer scrap and billet prices.

Heavy rainfall also affected market activity and movement of material, adding to the cautious sentiment. Buyers remained selective and focused on immediate requirements rather than building inventories at elevated levels. As a result, trading remained subdued despite rebar prices holding firm.

Outlook

Alang scrap prices are likely to remain range-bound in the near term. Firm Gujarat steel prices may keep sellers’ offers supported, but subdued buying, a wide offer-bid gap, softer Mandi sentiment and weather-related disruptions could limit further gains as of now.