India: BigMint's ferrous scrap index drops INR 100/t d-o-d amid lackluster steel demand

• Sponge iron prices remain stable d-o-d
  
  
• Scrap to finished steel prices dip INR 100-200/t today
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 100/tonne (t) d-o-d to INR 37,400/t DAP on 7 July 2026. Due to muted buying interest and weakening demand for finished steel, scrap prices in the region declined by INR 900-1,300/t in seven days.

Mandi Gobindgarh, a key secondary steel hub, continued to record downward price momentum this week as persistent rain and very weak local demand weighed on trading activity. Cautious buying by steel stockists and mills has forced sellers to trim offers, while muted enquiry levels limited spot transactions.

Market participants said the cautious stance among buyers was driven by uncertainty over nearterm demand, prompting sellers to lower prices to stimulate flows. Sellers also reported that elevated freight and labour costs are still squeezing margins, constraining aggressive discounting despite subdued sales.

Raw materials

Sponge iron (CDRI) prices in Mandi remained stable d-o-d at INR 29,200/t DAP. Steel-grade pig iron prices in Ludhiana also inched down by INR 100/t d-o-d to INR 41,000/t DAP.

Steel market trends

Ingot prices in Mandi Gobindgarh soften by INR 150/t d-o-d to INR 42,100/t DAP, while other major production centres reported declines of INR 100-400/t. Rebar (Fe500) prices in Mandi Gobindgarh dipped by INR 200/t to INR 47,000/t ex-works, while HR strip (patra) prices weakened by INR 300/t d-o-d to INR 45,500/t ex-works.

Scrap and finished-steel prices fell INR 800-1,300/t w-o-w, signalling weaker steel demand and a guarded purchasing stance among buyers.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,400-4,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $332/t, approximately INR 33,800/t (inclusive of freight). HMS (80:20) in Mumbai dropped by INR 600/t d-o-d to INR 31,400/t DAP as buying remained muted from last few days. Indicative prices of shredded from Europe stood at $388/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 14,900/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, click here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co