India: Alang ship-breaking scrap prices steady amid cautious buying

• Punjab concerns lift sentiment; buying stays cautious
  
  
• Weak steel demand keeps scrap market subdued
  
  

Ship-breaking melting scrap prices in Alang remained unchanged day on day on 2 July 2026, with HMS (80:20) assessed at INR 34,200/t ex-yard. Trading activity remained subdued as buyers restricted purchases to immediate requirements amid adequate material availability and weak downstream steel demand. Although concerns over possible power restrictions in Punjab improved sentiment in parts of the secondary steel market, the positive outlook was insufficient to translate into stronger spot buying. The broader ferrous value chain remained under pressure as billet prices continued to soften across western and northern India, reflecting sluggish demand for semi-finished and finished steel products.

In Gujarat, Bhavnagar billet prices fell by INR 500/t day on day to INR 41,000/t DAP, while rebar prices were unchanged at INR 46,100/t ex-works. Weak consumption of finished steel continued to discourage mills from procuring scrap aggressively, keeping buying activity largely hand-to-mouth despite stable scrap offers.

In northern India, Mandi billet prices declined by INR 200/t day on day to INR 42,900/t DAP, while rebar prices eased by INR 100/t to INR 47,700/t ex-works. HMS melting scrap prices slipped marginally by INR 100/t to INR 35,300/t DAP as secondary steel producers lowered both scrap and finished steel offers to reduce inventory amid weak downstream orders. Market participants noted that domestic mills continued to increase sponge iron consumption to maintain production, while the absence of imported scrap purchases limited support for local scrap prices despite tighter scrap availability.

Ship auction update

State-owned Oil and Natural Gas Corporation (ONGC) has announced the auction of the offshore drilling rig Sagar Vijay. The rig is currently stationed at Dighi Port in Maharashtra and is being offered for sale as part of ONGC's ongoing asset rationalisation programme.

Outlook

Alang ship-breaking scrap prices are expected to remain muted as weak billet and finished steel demand continues to limit scrap buying. Mills are likely to maintain need-based procurement unless downstream steel demand improves.