Prices for melting scrap metal for shipbreaking at Alang, Gujarat, increased by ₹200 per ton to ₹33,200 per ton on 24 January 2026. These price increases reflect a stronger regional steel market and improved confidence in suppliers as the trading environment has become more active. Price inflation has also resulted from higher prices for semi-finished and finished steel, which rose by ₹100 to ₹400 per ton; this has led to greater scrap demand from induction furnace mills, and greater market activity has resulted in more buying inquiries and tightened availability, with suppliers raising their offers. As India’s key ship-breaking hub, Alang continues to supply melting scrap to western steel producers, including Bhavnagar, and the latest move fits into recent volatility, following a ₹700/t jump to ₹33,000/t on January 1 and a subsequent ₹300/t correction on January 6. As mills are currently seeing higher scrap costs as a threat to their margins unless steel prices hold their values at current levels, they also may boost the level of restocking by suppliers of scrap materials, particularly if tenders for infrastructure projects result in increased demand for finished product.

Outlook:

The participants in the markets have been following the trends of the domestic steel markets, along with the activity in the international markets, and with continued demand for steel by buyers, prices may rise close to ₹33,500/t in the next week.