India: Alang melting scrap prices remain firm as vessel shortages keep supply tight

• Strong freight earnings encouraged shipowners to extend vessel operations
• Record-low vessel arrivals, steady demand offset impact of softer steel prices

India’s ship-breaking melting scrap prices in Gujarat’s Alang market remained unchanged d-o-d on 16 June 2026, with BigMint’s assessment placing HMS (80:20) at INR 35,300/t ($373/t) ex-yard. The stability came despite mild corrections in semi-finished and finished steel prices in the previous trading session, as tight scrap availability continued to support market fundamentals.

Supply constraints outweigh steel market softness

Market sentiment in Alang remained subdued, with participants citing an acute shortage of recyclable vessels. Strong freight earnings across major global shipping segments have encouraged shipowners to extend vessel operations rather than send ageing ships for recycling. At the same time, increased spending on repairs and life-extension programmes has further reduced demolition activity.

As a result, vessel arrivals at Alang have fallen to historically low levels, tightening the supply of ship-breaking scrap and limiting fresh inflows into recycling yards. Industry participants indicated that the current environment represents one of the most challenging periods for the ship-recycling sector, with yard operators struggling to secure adequate feedstock.

Demand remains stable

While activity levels remained cautious, stable demand from domestic consumers helped maintain prevailing scrap prices. Buyers largely continued with need-based procurement, balancing raw material requirements against softer trends in the downstream steel market.

Outlook

Alang melting scrap prices are expected to remain largely stable in the near term. Persistent shortages of recyclable vessels are likely to provide support, although prolonged weakness in semi-finished and finished steel markets could limit upward price movement.