India: Alang melting scrap prices remain stable amid limited buying

• Firm steel prices supporting seller offers across markets
• Wide offer-bid gaps continue to restrict scrap transactions

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d at INR 38,500/t ($403/t) ex-yard on 14 September 2026. Despite firm steel prices across key consuming markets, scrap buying remained subdued, with buyers largely unwilling to chase higher offers. A wide gap between seller expectations and buyer bids continues to limit spot transactions. Sellers are holding offers at current levels, while buyers remain focused on securing material at workable prices, keeping the market firm on the offer side but subdued in terms of actual trade.

Gujarat market update

In Gujarat, Bhavnagar billet prices increased by INR 500/t d-o-d to INR 47,200/t, while Ahmedabad rebar prices rose by INR 300/t to INR 51,900/t ex-works.

The continued rise in billet and rebar prices is supporting seller sentiment in the scrap market and allowing suppliers to maintain firm offers. However, higher steel prices have not resulted in a corresponding increase in scrap procurement. Buyers remain selective and are avoiding aggressive purchasing at elevated scrap levels, keeping the offer-bid spread wide.

The current market therefore remains supported by higher steel realisations on one side, while limited physical buying continues to restrict price movement on the other. Until the gap between offers and bids narrows, stronger steel prices alone are unlikely to generate a significant improvement in scrap transaction volumes.

Mandi market update

In Mandi Gobindgarh, HMS 80:20 scrap prices increased by INR 800/t d-o-d to INR 40,000/t, while billet prices rose by INR 700/t to INR 48,000/t. Rebar prices also increased by INR 800/t d-o-d to INR 53,200/t ex-works.

The increase across scrap and steel products reflects the firm price environment in the secondary steel market. Healthy scrap arrivals have ensured adequate availability of HMS and other melting grades, while traders continue to report enquiries from buyers in Punjab, Haryana and Himachal Pradesh.

However, enquiry levels have not translated into aggressive procurement. Buyers remain price-sensitive, particularly as scrap offers have moved higher, while sellers are reluctant to reduce their asking levels amid firm steel prices. As a result, the market is seeing higher quoted prices but relatively limited conversion into actual deals.

Outlook

Scrap prices are likely to remain firm on the offer side in the near term, supported by higher steel prices and seller resistance to lower levels. However, the wide offer-bid gap and limited buying activity could restrict further gains unless actual procurement improves.