India: Alang melting scrap prices stable following improved trading amid news of Punjab power cuts
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- Scrap buyers remain cautious amid subdued steel trade
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- Semis, finished steel prices decline despite supply concerns
Ship-breaking melting scrap prices in Alang remained stable d-o-d on 1 July 2026, with HMS (80:20) assessed at INR 34,200/t ex-yard, as market participants maintained a cautious approach amid limited buying activity and sufficient availability. While billet prices softened across western and northern India, reports of possible power restrictions in Punjab improved buying sentiment in the secondary steel market, although actual procurement remained largely need-based.
In Gujarat, western India, Bhavnagar billet prices declined by INR 100/t d-o-d to INR 41,500/t DAP, while rebar prices held steady at INR 46,100/t ex-works. Market sentiment strengthened in Mandi Gobindgarh after reports that the Punjab State Power Corporation Ltd. (PSPCL) had informed steel mills that power cuts could be implemented once or twice a week. Participants believe any reduction in electricity supply could temporarily restrict steel production, potentially tightening billet availability.
Despite the improved sentiment, physical demand remained measured. Billet prices in Mandi declined by INR 100/t d-o-d to INR 43,100/t DAP, while rebar prices eased by INR 200/t to INR 47,800/t ex-works. HMS melting scrap prices remained unchanged at INR 35,400/t DAP as mills continued to purchase raw materials primarily to meet immediate production requirements.
Market participants said trading activity improved following reports of possible power restrictions, but buying of both semi-finished and finished steel remained moderate. Buyers largely adopted a wait-and-watch approach after the recent sharp rise in prices, preferring to postpone fresh bookings until greater clarity emerges on the duration and scale of the proposed power cuts. The uncertainty surrounding production schedules has also limited confidence in raw material procurement.
Ship auction update:
State-owned Oil and Natural Gas Corporation (ONGC) has announced the auction of the offshore drilling rig Sagar Vijay. The vessel is currently located at Dighi Port, Maharashtra, and is being offered for sale by ONGC as part of its asset disposal programme.
Outlook:
The market is likely to closely monitor the implementation of the proposed Punjab power restrictions over the coming days. Any sustained disruption to steel production could tighten billet availability and lend support to secondary steel prices and, consequently, scrap prices, while continued cautious buying and moderate finished steel demand may limit the pace of any price recovery.
