India: Alang melting scrap prices decline amid weak steel demand

• Softer billet, rebar weigh on scrap prices across Gujarat
• Demand from Mandi scrap buyers picks up after price drop

Alang’s ship-breaking melting scrap (HMS 80:20) prices corrected by INR 500/t d-o-d to INR 37,000/t ($387/t) ex-yard on 23 September 2026. The decline followed weaker steel prices across key consuming markets, with slow buying and subdued finished-steel demand weighing on scrap procurement. Mills remained focused on immediate requirements, limiting fresh purchases and putting pressure on scrap prices.

Gujarat market update

In Gujarat, Bhavnagar billet prices fell by INR 700/t d-o-d to INR 46,000/t DAP, while Ahmedabad rebar prices decreased by INR 500/t to INR 52,000/t ex-works.

The correction in billet and rebar, combined with weak finished-steel demand, continued to weigh on scrap buying. Mills largely restricted procurement to immediate requirements, while market participants remained cautious about building inventories amid the softer price trend. The decline in steel prices also reduced buyers’ willingness to accept higher scrap offers, keeping transaction activity subdued.

Mandi market update

In Mandi Gobindgarh, billet prices declined by INR 200/t d-o-d to INR 47,350/t DAP, while HMS melting scrap prices inched down by INR 100/t to INR 38,300/t DAP. Rebar prices also corrected by INR 300/t to INR 52,700/t ex-works.

Scrap buying activity remained slow despite steady arrivals. However, some local steelmakers reported an improvement in buyer enquiries following the sharp price correction. Market participants said the lower price levels have started to attract some buying interest, although actual procurement remains limited. Participants are hopeful that prices could stabilise and recover once the current decline eases.

Outlook

Scrap prices are likely to remain under pressure in the near term as weaker steel prices and slow buying continue to weigh on demand. However, improving enquiries in Mandi could provide some support if buying activity picks up and the current correction begins to stabilise.