India: Alang ship-breaking scrap prices fall on weak steel demand

• Softer semis, finished steel prices keep scrap buying need-based
  
  
• Long-term outlook positive, India emerges as world's top ship-recycler
  
  

Ship-breaking melting scrap prices in Gujarat's Alang market declined by INR 600/t d-o-d on 22 June 2026, as buyers continued to procure cautiously despite relative stability in the downstream steel segment. According to BigMint's assessment, HMS (80:20) scrap was assessed at INR 33,800/t ($357/t) ex-yard. Market sentiment remained subdued amid weak end-user demand, which restrained buying interest and limited the scope for price recovery.

Meanwhile, semi-finished steel prices in Bhavnagar registered a slight correction, while finished steel prices in Ahmedabad fell by INR 400/t in the previous trading session.Lower finished steel realisations continued to pressure scrap market sentiment, resulting in cautious and requirement-based procurement.

Long-term ship recycling outlook remains positive

Despite the current weakness, industry participants remain optimistic about the long-term prospects of the ship-recycling sector. India recently emerged as the world's largest ship-recycling nation, accounting for 35.4% of global recycling volumes, with Alang continuing to serve as the country's primary recycling hub.

Market sources said ongoing investments in recycling infrastructure, higher compliance with international environmental standards, and capacity expansion plans are expected to strengthen the sector's competitiveness over the medium term. However, these structural developments have had limited impact on spot scrap prices, which continue to be influenced primarily by steel demand fundamentals and mill purchasing activity.

For now, participants expect scrap prices to remain under pressure unless downstream steel demand improves and steelmakers return to the market with stronger restocking requirements.