Alang's ship-breaking scrap prices have softened with HMS (80:20) scrap currently assessed at ₹30,100 per tonne, down by ₹200 from earlier levels. This price decline is reflective of a continuing downward movement, which started in early September when prices fell by ₹200–₹300 per tonne due to weaker local demand and lower purchases from integrated steel mills. The decline is primarily driven by sluggish trading activity, cautious buying from re-rollers, and weak finished steel prices in the western Indian market.

At the same time, increased government restrictions on use and difficulties in dealing with Bureau of Indian Standards (BIS) requirements have resulted in reduced direct demand for Alang scrap. While global ship scrap prices have some support in the range of $430–470 per LDT, the competitive pressure from Bangladesh and Pakistan has prompted Indian recyclers to reduce their bid prices, thus contributing to the ease in the Alang market.

Outlook:

Although sentiment remains subdued at present, there is cautious optimism that a recovery may occur in the months ahead. Seasonal improvements in steel consumption, especially from the construction sector, should provide further support to scrap demand and pricing. However, meaningful price recovery would need to be supported by a number of factors: improvement in finished steel offtake, easing of regulatory barriers, and better competitiveness of Indian recyclers in the South Asian region, to name a few.  Until this occurs, prices at Alang are expected to stabilise within a range with limited upside potential in the short term.