India: BigMint's ferrous scrap index dips d-o-d as weak steel demand weighs on buying

• Power outages, output cuts at mills dampen scrap demand
  
  
• Tight liquidity, labour shortages limit steel market activity
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 100/tonne (t) d-o-d to INR 38,200/t DAP on 2 July 2026.

Mandi, a key price-indicator market for secondary steel mills, recorded cautious buying as steel demand remained weak and buyers continued to quote on the lower side.

A mill owner informed BigMint, "Regional scrap demand softened as weak offtake of semifinished and finished steel curtailed mill purchases. Buying remained limited because of production cuts and power outages at several mills, while logistical bottlenecks and labour shortages disrupted supplies in key markets. An ongoing liquidity squeeze further weighed on transactions, leaving overall market activity subdued."

Raw materials

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t d-o-d to INR 29,500/t DAP. Steel-grade pig iron prices in Ludhiana also inched down by INR 50/t d-o-d to INR 40,800/t DAP.

Steel market trends

Semi-finished steel prices reflected a softer trend across regions. Ingot prices in Mandi Gobindgarh eased by INR 100/t d-o-d to INR 42,800/t DAP, while other major production centres reported declines of INR 50-400/t. Rebar (Fe500) prices in Mandi Gobindgarh fell by INR 200/t to INR 47,500/t ex-works, while HR strip (patra) prices remained stable d-o-d at INR 46,600/t ex-works.

Mandi steelmakers expect only minor price fluctuations in the near term as premonsoon demand remains absent. With weak offtake, many mills have already scaled back production; only a few large units continue at around 90% capacity. Those mills are also considering further cuts of 20-30% in the near future.

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 $335/t, approximately INR 34,200/t (inclusive of freight). HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 32,150/t DAP. 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 14,800/t.

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

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