India: Melting scrap prices ease in Alang as weak steel market sentiment weighs

• Melting scrap down INR 500/t; re-rolling grades ease by ~INR 300/t
• Scrap ship shortages keep supply tight despite softer steel market

India’s ship-breaking melting scrap prices in Gujarat’s Alang market declined by INR 500/t d-o-d on 17 June 2026, with BigMint’s assessment for HMS (80:20) at INR 34,800/t ($368/t) ex-yard. Re-rollable scrap prices also softened by around INR 300/t. The decline follows weakness in semi-finished and finished steel markets, although tight scrap availability continues to offer underlying support.

Steel market weakness weighs on prices

Market sentiment in Alang remained cautious as softer trends in domestic steel markets which prompted buyers to seek lower scrap offers. The correction in finished and semi-finished steel prices reduced purchasing appetite, leading to a modest decline in both melting and re-rolling scrap segments.

Vessel shortages continue to restrict supply

Despite the price correction, supply fundamentals remain supportive. Availability of recyclable vessels continues to be extremely limited, with market participants indicating that only around 8-10 vessels are currently available for recycling at Alang. Strong freight earnings have encouraged shipowners to keep vessels in operation for longer periods, while increased investments in repairs and life-extension programmes have further delayed demolition activity.

As a result, vessel arrivals remain near historic lows, restricting fresh scrap generation and keeping inventory levels tight across recycling yards. The limited vessel availability continues to provide underlying support to scrap prices despite the recent correction.

Domestic consumers continued purchasing primarily on a requirement basis. While buying activity remained stable, market participants adopted a cautious stance amid ongoing weakness in the steel value chain.

Outlook

Alang scrap prices may remain under mild pressure in the short term if weakness in steel markets persists. However, the continued shortage of recyclable vessels is expected to prevent any sharp correction, keeping downside risks limited and supporting overall market fundamentals.