India: Alang’s melting scrap prices hold steady d-o-d amid tight availability

• Need-based buying limits price gains despite firmer steel values
• Janmashtami brings steel trade across Gujarat to near standstill

Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained unchanged d-o-d at INR 36,500/t ($386/t) ex-yard on 3 September 2026. Market participants indicated that prices have remained range-bound despite firmer steel values in key consuming markets, as mills continued to procure only against immediate requirements and sellers resisted lower offers. Limited vessel arrivals and fewer ships entering the recycling pipeline have constrained scrap availability, providing support to prevailing price levels.

At the same time, the upcoming Janmashtami festival has brought steel trading activity across Gujarat to a near standstill, with demand temporarily paused and market participants largely inactive. Consequently, trading volumes and price discovery are expected to remain limited over the next few days, with quoted levels likely to remain indicative until normal market activity resumes after the festival.

Gujarat market update

Steel prices in Gujarat moved in diverging directions on 2 September, reflecting mixed market sentiment. Bhavnagar billet prices decreased by INR 300/t to INR 45,000/t, while Ahmedabad rebar prices edged up by INR 100/t to INR 50,200/t ex-works, supported by firmer demand for finished steel. Despite the firmer rebar market, overall trade activity remained subdued, with buyers largely adopting a cautious approach. No major transactions were reported across the market over the past couple of days.

Mandi market update

Mandi Gobindgarh recorded weakness in scrap and billet prices on 2 September, while rebar remained stable. HMS (80:20) scrap prices fell by INR 600/t to INR 39,000/t, and billet prices decreased by INR 250/t to INR 46,300/t. Rebar prices, however, held steady at INR 51,600/t ex-works. The market remained subdued, with limited buying interest and cautious procurement by mills. Participants indicated that softer semi-finished steel prices continued to weigh on scrap demand and market sentiment.

Outlook

Alang HMS 80:20 prices are expected to remain largely stable in the near term, supported by tight scrap availability and limited vessel arrivals. However, Janmashtami-related market inactivity is likely to keep trading volumes and price discovery subdued over the next few days. Mills are expected to maintain need-based procurement, while sellers may continue to resist lower offers. Overall, stable-to-firm sentiment is likely, with clearer price direction expected once market activity resumes after the festival.