- Buyers purchase on need basis amid ample supply
- Billet, rebar prices in Bhavnagar fall by INR 400-600/t
Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 7 July 2026, with HMS (80:20) assessed at INR 33,000/t ($347/t) ex-yard. Market activity remained muted, as buyers adopted a need-based procurement approach due to comfortable material availability and subdued demand in the finished steel segment.
Gujarat market update
In Gujarat, Bhavnagar billet prices declined by INR 600/t d-o-d to INR 40,100/t DAP, reflecting sluggish buying from re-rollers amid weak finished steel demand. Meanwhile, Ahmedabad rebar prices also fell by INR 400/t to INR 45,600/t ex-works, indicating continued pressure in the downstream steel market.
Weak consumption of finished steel kept overall market sentiment subdued, discouraging mills from procuring scrap aggressively. Although domestic scrap offers remained largely stable, buyers continued to follow a hand-to-mouth procurement strategy, purchasing material only against immediate production requirements while closely monitoring steel demand and price movements.
Mandi market update
In northern India, Mandi Gobindgarh billet prices declined by INR 300/t d-o-d to INR 42,250/t DAP, while rebar prices eased by INR 200/t to INR 47,200/t ex-works. HMS (80:20) melting scrap prices also slipped by INR 400/t to INR 34,200/t DAP.
The secondary steel market remained under pressure on Monday, with trading activity largely subdued due to weak finished steel demand. Mills reported continued liquidity constraints, limiting fresh procurement and forcing buyers to remain on the sidelines. As a result, scrap buying remained cautious and requirement-based. Market participants indicated that sentiment is likely to remain weak in the near term unless demand in the finished steel segment improves.
Ship recycling update
Alang witnessed healthy ship recycling activity during H1CY’26, with around 50 vessels beached, representing a combined lightweight displacement tonnage (LDT) of over 550,000 t. June 2026 witnessed six vessel arrivals, with a cumulative LDT of more than 152,000 t, contributing significantly to scrap generation from the ship-breaking sector.
Outlook
Alang melting scrap prices are expected to remain largely stable over the next few trading sessions as comfortable scrap availability continues to balance subdued demand. Secondary steel mills are likely to maintain need-based procurement amid weak finished steel consumption and liquidity constraints. Unless billet and rebar demand improves, aggressive scrap buying is expected to remain limited, keeping overall market sentiment cautious.
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