India: BigMint's ferrous scrap index surges INR 200/t on improved steel demand

• Finished steel prices trend higher across segments
  
  
• Demand recovery lifts near-term sentiment
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 200/t d-o-d to INR 39,400/tonne (t) DAP on 1 May 2026. Scrap prices in Mandi increased by INR 200-300/t d-o-d due to slow arrival of scrap. Scrap prices surged by INR 100-450/t across regions this week.

Mandi Gobindgarh's steel market recorded improved demand across both trading sessions today, with mills actively buying domestic scrap despite ongoing shortages. Logistics, GST disruptions and labour shortages continued to hinder operations.

A mill owner informed "Demand for semi-finished steel trended higher, drawing active participation from local buyers and lending a slightly positive outlook to the market."

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable over the past week at INR 32,900/tonne DAP, reflecting balanced demand-supply dynamics.In contrast, steel-grade pig iron prices in Ludhiana rose steadily by INR 200/t to INR 42,500/t DAP, buoyed by firm demand.

Steel market

In the Mandi region, steel ingot prices increased by INR 200/t to INR 45,400/t during the price reporting and normalisation phase. However, prices in other key markets rose INR 100-500/t.

Similarly, in the rebar (Fe500) segment, Mandi Gobindgarh prices rose by INR 400/tonne day-on-day to INR 50,500/tonne ex-works, backed by decent demand. TMT prices saw an uptick after a one-week pause in the region, while HR strip (patra) prices climbed INR 200/tonne to INR 47,000/tonne ex-works.

Overview of Alang market

Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged day-on-day on 1 May, 2026, with BigMint assessing HMS (80:20) at INR 37,000/t ex-yard; despite yesterday's increases in semi-finished and finished steel prices in the region, moderate buying inquiries from Bhavnagar-based IF steel mills led suppliers to maintain stable offers today.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,800-6,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $390/t, approximately INR 39,300/t (inclusive of freight).Indicative prices of shredded from Europe stood at $406/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 16,300/t.

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

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