India: BigMint's ferrous scrap index climbs up by INR 900/t d-o-d as demand improves

• Pre-Holi restocking, Iran war spark price hikes
  
  
• Semis, finished steel prices surge by INR 1,000/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 900/tonne (t) d-o-d to INR 37,300/t DAP on 02 March 2026.

Scrap prices in Mandi Gobindgarh -- one of India's key secondary steel hubs -- surged today amid strong buying interest from local steelmakers

Bullish signals boost steel prices in Mandi Gobindgarh

Primary steel mills are igniting a bullish rally with fresh announcements of price hikes in finished steel, while secondary producers in Mandi Gobindgarh aggressively procured scrap from the latter half of Saturday's trading through today-racing against the upcoming festival closure that will halt markets for 3-4 days and stall logistics for loading and unloading; compounding this, escalating ongoing geopolitical tensions are spiking oil prices, influencing India's steel market with higher energy and freight costs, all pointing to firm upward pressure on steel and scrap prices.

A steel maker informed BigMint, "The sharp steel price hike looks short-lived, as actual demand remains unchanged -- fueled instead by frantic, rumor-driven buying on whispers of post-festival increases. Secondary mills are still saddled with piled-up finished steel inventory from last Friday, but Saturday's steel scrap buying from local mills saw strong response, with lifting activity notably improving across Punjab."

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi increased by INR 800/t d-o-d to INR 32,600/t(DAP). Similarly, steel-grade pig iron prices in Ludhiana improved significantly by INR 900/t d-o-d to INR 39,900/t (DAP).

Steel market

Semi-finished steel prices (ingot) in Mandi Gobindgarh rose by INR 1,050/t d-o-d to INR 43,800/t (DAP), while ingot prices across major production hubs strengthened by INR 800-2,200/t over the same period. Ingot prices in Raigarh jumped by INR 2,200/t today, marking the largest single-day increase observed across India.

Rebar (Fe500) prices in Mandi Gobindgarh rose INR 1,000/t d-o-d, reaching INR 48,600/t ex-works.

Overview of Mumbai steel market

Rebar (Fe 500) prices on the Mumbai IF route increased by INR 1,400/t d-o-d to INR 50,200/t ex-works, primarily supported by ongoing geopolitical concerns and the upcoming Holi holiday period. Buying activity remained moderate throughout the day, with the continued upward price trend leading to selective and need-based purchases. Mills largely maintained firm offers amid stable demand conditions.

On the raw material side, HMS (80:20) scrap was assessed at INR 33,800/t DAP, with the scrap-billet conversion spread hovering around INR 10,700/t.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 6,300-6,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $350/t, approximately INR 34,387/t (inclusive of freight). HMS (80:20) prices in Mumbai up by INR 800/t d-o-d to INR 33,800/t DAP. Indicative prices of shredded from Europe stood at $373/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 14,000/t.

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