India: Alang melting scrap prices decline by INR 500/t d-o-d further amid weak steel market

• Continued corrections in billet and rebar weigh on scrap values
• Weak demand keeps mills focused on immediate procurement needs

Alang’s ship-breaking melting scrap (HMS 80:20) prices corrected by INR 500/t d-o-d to INR 36,500/t ($381/t) ex-yard on 24 September 2026. The decline followed another sharp correction in steel prices across Gujarat and Mandi Gobindgarh, with weak finished-steel demand continuing to limit scrap procurement. Mills remained focused on immediate requirements, while the softer steel market reduced buyers’ willingness to procure scrap at higher levels.

Gujarat market update

In Gujarat, Bhavnagar billet prices fell by INR 700/t d-o-d to INR 45,300/t DAP, while Ahmedabad rebar prices decreased by INR 700/t to INR 51,300/t ex-works.

The continued decline in billet and rebar prices kept market sentiment weak and further pressured scrap procurement. Buyers remained cautious about fresh purchases amid falling steel prices, while mills continued to focus on need-based procurement. The correction in finished and semi-finished steel has also lowered acceptable scrap purchase levels, adding pressure on sellers to align offers with prevailing market conditions.

Mandi market update

In Mandi Gobindgarh, billet prices declined by INR 500/t d-o-d to INR 46,850/t DAP, while HMS melting scrap prices eased by INR 400/t to INR 37,900/t DAP. Rebar prices also corrected by INR 500/t to INR 52,200/t ex-works.

In Mandi, mills are currently limiting their scrap procurement margins, primarily due to an oversupply of scrap arriving from neighbouring states. In addition, mills have reduced their buying capacity by approximately 50-60%. This combination of weaker demand and higher arrivals has put downward pressure on scrap prices, leaving local scrap suppliers under significant strain.

Outlook

Scrap prices are likely to remain under pressure in the near term as falling steel prices, weak finished-steel demand, higher scrap arrivals and reduced mill buying capacity continue to weigh on procurement. A stabilisation in billet and rebar prices, along with a recovery in mill buying, will be important for the scrap market to find a floor.