India: Alang scrap prices fall further amid weak buying interest

• Gujarat and Mandi steel prices declined
• Buyers remained cautious amid weak liquidity and delayed payments

Alang’s ship-breaking melting scrap prices for HMS 80:20 fell INR 300/tonne (t) day-on-day (d-o-d) to INR 38,500/t ($400/t) ex-yard on 6 October 2026, as weak buying interest and cautious procurement continued to weigh on the market.

Buyers remained focused on immediate requirements, with a wide gap between sellers’ offers and buyers’ bids limiting trade activity. Uncertainty over demand and fluctuations in steel prices in key consuming markets prompted buyers to avoid inventory build-up and anticipate further price corrections.

Gujarat market update

In Gujarat, Bhavnagar billet prices fell INR 500/t d-o-d to INR 47,500/t DAP, while Ahmedabad rebar prices declined INR 200/t to INR 53,300/t ex-works.

The decline in billet and rebar prices added pressure to the scrap market, with buyers remaining unwilling to match sellers’ higher offers. This kept transactions subdued and reinforced the cautious market sentiment.

Mandi market update

In Mandi Gobindgarh, billet prices fell INR 100/t d-o-d to INR 48,650/t DAP. HMS melting scrap prices also declined INR 100/t to INR 39,900/t DAP, while rebar prices fell INR 100/t to INR 53,600/t ex-works.

Persistent liquidity constraints and delayed payments continued to restrict buying interest, keeping procurement largely need-based as mills remained cautious about inventory replenishment.

Outlook

Despite the current weakness, secondary steel mills are anticipating an upward movement in prices in the near term following price-hike announcements by primary steel producers. However, the near-term price direction will depend on whether higher primary steel prices translate into stronger downstream demand and improved scrap buying interest.