- Tight supply and higher primary mill prices continue to support offers
- Weak buying interest persists as mills remain cautious on inventories and costs
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased by INR 300/t d-o-d to INR 37,300/t ($394/t) ex-yard on 8 September 2026. The increase was driven by tight scrap availability and higher prices from primary mills. However, buying activity remained very limited as buyers resisted higher offers and stayed cautious amid inventory build-up concerns. Low coal stocks following the monsoon, coupled with high electricity demand, have also increased pressure on mill operating costs.
Gujarat market update
In Gujarat, Bhavnagar billet prices increased by INR 100/t d-o-d to INR 45,300/t, while Ahmedabad rebar prices rose by INR 100/t to INR 50,300/t ex-works on 7 September 2026. The marginal gains indicate some firmness in the regional steel market, although buying interest remains cautious.
Mandi market update
In Mandi Gobindgarh, HMS 80:20 scrap prices decreased by INR 100/t d-o-d to INR 38,200/t, while billet prices remained stable at INR 46,400/t. Rebar prices declined by INR 100/t d-o-d to INR 51,400/t ex-works, reflecting subdued downstream demand.
Outlook
Scrap prices are likely to remain firm in the near term, supported by limited availability and higher primary mill prices. However, further gains may be difficult as buyers continue to resist elevated offers and procure only against immediate requirements. Inventory concerns, low coal stocks and high electricity demand are expected to keep mills cautious, limiting buying activity and keeping the market range-bound.
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