India: Alang scrap prices hold firm as Gujarat billet prices ease

• Alang scrap remains supported despite weaker billet prices in Gujarat
• Tight arrivals and compliance checks keep Mandi procurement need-based

Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained unchanged at INR 33,800/t ($354/t) ex-yard on 17 August 2026, as firm scrap availability offset mixed signals from the regional steel market.

Gujarat market update

Bhavnagar billet prices declined by INR 200/t day on day to INR 41,600/t DAP, indicating some pressure on mill realisations. However, Ahmedabad rebar prices remained stable at INR 46,400/t ex-works, suggesting downstream demand was sufficient to prevent a broader correction in finished steel prices. Market participants continued to monitor procurement requirements and steel realisations before committing to larger volumes.

Mandi market update

In Mandi Gobindgarh, HMS 80:20 scrap prices remained stable at INR 35,600/t DAP. Billet prices were largely unchanged at INR 42,450/t, while rebar prices held steady at INR 47,300/t.

Despite stable steel prices, trading activity remained subdued amid ongoing GST inspections and vehicle checks. Logistics-related disruptions and weak scrap arrivals into Punjab tightened physical availability, while frequent compliance checks slowed the movement of material into the market. Some suppliers reportedly diverted scrap consignments to neighbouring states to avoid delays, further affecting local supply dynamics.

Outlook

The domestic scrap market is likely to remain rangebound to firm in the near term, supported by constrained arrivals and cautious selling. However, sustained price gains will depend on downstream steel demand, mill operating rates and the extent to which GST inspections and logistics disruptions continue to restrict scrap movement. Stable rebar prices provide some support, although softer billet prices in Gujarat could limit upside in the immediate term.

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