- Steel prices in Mandi, Ahmedabad increase, lifting scrap prices
- Mandi mills curb scrap buying amid margin pressure, ample supply
Alang’s ship-breaking melting scrap prices (HMS 80:20) increased by INR 100/tonne (t) d-o-d to INR 38,100/t ($404/t) ex-yard on 22 October 2026. The increase reflects a modest recovery in prices after recent fluctuations, supported by firmer steel prices in regional markets. However, the upward movement remained limited, indicating that buyers continue to assess procurement requirements against prevailing finished steel demand.
Market direction will depend on whether improved steel prices translate into stronger buying interest from rerollers and other scrap consumers. If downstream demand remains inconsistent, buyers may continue to restrict purchases to immediate requirements, limiting the scope for a sustained price recovery.
Gujarat market update
In Gujarat, billet prices at Bhavnagar increased by INR 600/t to INR 47,100/t DAP on 21 October, while rebar prices in Ahmedabad rose by INR 400/t to INR 53,000/t ex-works. The gains indicate firmer steel prices in the region, although sustained scrap demand will depend on whether improved finished steel realisations support mill procurement.
Mandi market update
In Mandi Gobindgarh, billet prices rose by INR 200/t to INR 47,200/t DAP on 21 October, while rebar prices increased by INR 200/t to INR 52,200/t ex-works. However, HMS 80:20 scrap prices remained stable at INR 37,600/t DAP, reflecting limited upward movement in the scrap segment despite gains in steel prices.
The scrap market continued to face margin pressure, with mills maintaining cautious, need-based procurement amid sufficient inventories and healthy arrivals over the past few weeks. Comfortable raw material availability reduced the urgency to replenish stocks, while tight conversion margins limited buyers’ willingness to raise bids. As a result, higher billet and rebar prices have yet to translate into stronger scrap prices in Mandi.
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