India: Alang’s ship-breaking scrap prices decline amid subdued market activity

• Mandi, Bhavnagar billet prices fall, weighing on steel sentiment
• Cautious buying continues to limit trade activity across segments

Alang’s ship-breaking melting scrap prices (HMS 80:20) declined by INR 500/t ($5/t) d-o-d to INR 38,000/tonne (t) ($393/t) ex-yard on 9 October 2026. The decline reflects continued weakness in regional steel prices, which has weighed on buyers’ procurement appetite. Market participants remain cautious, with purchasing largely driven by immediate requirements rather than inventory building.

The softer trend in Alang comes amid pressure on billet prices in Bhavnagar and Mandi Gobindgarh, limiting support from the downstream steel market. Lower steel realisations have squeezed rerollers’ margins and reduced their willingness to absorb higher scrap costs.

Gujarat market update

In Gujarat, billet prices at Bhavnagar fell by INR 700/t d-o-d to INR 47,500/t DAP, reflecting weaker market conditions. Meanwhile, rebar prices in Ahmedabad remained stable at INR 53,300/t ex-works. The divergence between billet and rebar prices indicates mixed signals across the finished and semi-finished steel segments, limiting clarity on near-term scrap demand.

Mandi market update

In Mandi Gobindgarh, billet prices declined by INR 300/t d-o-d to INR 48,200/t DAP on 9 October. HMS scrap prices fell by INR 500/t to INR 39,300/t DAP, while rebar prices decreased by INR 200/t to INR 53,500/t ex-works.

The simultaneous decline in scrap, billet and rebar prices points to continued pressure across the regional steel value chain. Weaker finished steel realisations are likely to constrain secondary mills’ margins and reduce their willingness to procure scrap aggressively, while buyers may continue to focus on immediate requirements rather than building inventories.

Outlook

Ferrous scrap markets across Alang, Gujarat, and Mandi Gobindgarh are likely to remain under pressure in the near term, with declining billet prices and weaker downstream realisations limiting buying appetite. Stable rebar prices in Ahmedabad offer some support, but sustained recovery will depend on improved finished steel demand, better mill margins and increased procurement activity.