India: BigMint's scrap index drops INR 400/t d-o-d on weak steel market sentiment

• Sponge iron prices fall by INR 200/t d-o-d
  
  
• Semi-finished steel prices drop INR 300/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, eased by INR 400/tonne (t) d-o-d to INR 37,500/t DAP on 6 July 2026. Mandi Gobindgarh's secondary steel market extended its decline on Monday amid soft sentiments and a paused trading environment, as mills cited lackluster finished steel demand fuelling liquidity pressures and subdued scrap buying, leaving prices trending lower with buyers sidelined and no near-term recovery trend in sight.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh decreased by INR 200/t d-o-d to INR 29,200/t DAP. In contrast, steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 41,100/t DAP.

Steel market trend

The semi-finished steel market in Mandi Gobindgarh recorded a day-on-day decrease of INR 300/t, with current prices assessed at INR 42,250/t DAP during the reporting and normalisation period. In other major production centres, ingot prices declined by INR 300-600/t d-o-d.

Rebar (Fe500) prices in Mandi Gobindgarh declined by INR 200/t to INR 47,200/t exw, with minimal trade activity today.

Overview of Alang market

Ship-breaking melting scrap prices in Alang declined by INR 300/tonne (t) d-o-d to INR 33,000/t ex-yard on 6 July as weak downstream steel demand continued to pressure the market. Mills restricted purchases to immediate production requirements amid comfortable scrap availability, while sluggish billet and finished steel sales discouraged inventory building.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,500-4,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330-335/t, approximately INR 34,000/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $380-385/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

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