- Billet and rebar prices fall in Gujarat and Punjab
- Buyers prioritise immediate needs over inventory building
Alang’s ship-breaking melting scrap prices (HMS 80:20) declined by INR 200/tonne (t) d-o-d to INR 37,300/t ($390/t) ex-yard on 12 October 2026. Continued weakness in downstream steel markets has dampened buying interest, keeping procurement activity subdued. Buyers remain cautious and are prioritising immediate requirements over inventory building amid uncertain price direction.
Gujarat market update
In Gujarat, billet prices at Bhavnagar fell by INR 800/t d-o-d to INR 46,200/t DAP, while rebar prices in Ahmedabad declined by INR 400/t to INR 52,500/t ex-works. The simultaneous decline in semi-finished and finished steel prices points to continued pressure across the regional market, potentially limiting mills’ willingness to absorb higher scrap costs.
Mandi market update
In Mandi Gobindgarh, billet prices declined by INR 450/t d-o-d to INR 47,450/t DAP. HMS scrap prices fell by INR 400/t to INR 38,500/t DAP, while rebar prices decreased by INR 600/t to INR 52,900/t ex-works. The broader price correction indicates weak downstream realisations and subdued procurement demand, adding pressure on secondary steelmakers’ margins.
Outlook
Ferrous scrap prices are likely to remain under pressure in the near term as weakness in billet and rebar markets limits buying interest. Unless finished steel demand and realisations improve, mills are expected to maintain cautious procurement strategies, with purchases largely linked to immediate production requirements rather than stock replenishment.
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