India: Ship-breaking scrap prices rise d-o-d by INR 500/t on firmer steel realisations

• Easing rainfall boosts steel prices in Gujarat by INR 100-200/t
• Supply tightness lifts scrap prices in Mandi despite muted demand

Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, increased by INR 500/t ($5/t) d-o-d to INR 33,800/t ($354/t) ex-yard on 14 August 2026, supported by firmer semi-finished and finished steel prices. Tight scrap availability also supported prices, with limited material availability in the market.

Gujarat market update

Bhavnagar billet prices rose by INR 100/t d-o-d to INR 41,800/t DAP, while Ahmedabad rebar prices increased by INR 200/t to INR 46,400/t ex-works. Mills reported healthy booking activity in finished and semi-finished steel over the past couple of days, as easing rainfall supported construction activity and encouraged buyers to return to the market.

Improving order books allowed mills to gradually reduce spot discounts, lifting effective realisations and strengthening their ability to absorb higher raw-material costs. Market participants expect prices to remain firm in the near term, provided downstream demand sustains its recent improvement.

Mandi market update

In Mandi Gobindgarh, HMS 80:20 scrap prices increased by INR 200/t d-o-d to INR 35,600/t DAP. Billet prices remained stable at INR 42,500/t, while rebar prices rose by INR 300/t to INR 47,300/t.

Stringent GST document checks at entry points have slowed inter-state scrap inflows, tightening physical availability. Some larger mills are reportedly paying premiums to secure melting scrap, providing additional support to prices.

However, finished steel demand remains moderate, limiting the extent to which higher scrap costs can be passed through. Monsoon-related logistical constraints are also restricting market activity.

Outlook

The near-term outlook remains cautiously firm. Tight scrap availability and steady mill procurement are expected to provide a price floor, while improved steel bookings and higher realisations could offer further support. However, sustained gains will depend on stronger end-user demand and continued improvement in downstream steel realisations.

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co