India: BigMint's ferrous scrap index inches up amid tight supply

• Weak semis, finished steel demand limits upside
  
  
• Labour shortages, logistics issues impact mill operations
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 100/t d-o-d to INR 39,000/tonne (t) DAP on 29 April 2026. Scrap prices in Mandi rose by INR 100-200/t d-o-d due to tight availability.

Mandi Gobindgarh, a primary secondary steel hub in India, witnessed significant market volatility, driven by operational constraints and supply chain disruptions. The region has been experiencing an acute shortage of manpower and logistical issues, which have created major challenges for local mills, while a persistent scarcity of domestic and imported scrap has further tightened market availability.In response to supply constraints, scrap sellers increased prices during todays trading session. However, demand for finished and semi-finished steel has remained dull over the past week, creating substantial inventory and financial pressure for regional producers and ultimately limiting today's scrap price hike.

Going forward, market participants expect prices to remain within a narrow range in the days ahead, as the market struggles to balance weak end-user demand against rising input costs. However, a slight upward bias in the scrap segment is expected to persist due to the sustained decline in imported arrivals and slow domestic scrap collection.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 32,900/t DAP. Similarly, steel-grade pig iron prices in Ludhiana also remained steady at INR 42,000/t DAP.

Steel market trend

Mandi Gobindgarhs ingot market showed resilience today, with prices remaining unchanged at INR 45,000/t DAP, whereas other regional centres experienced price drops of INR 100-300/t; conversely, a few key regions witnessed an uptick of the same magnitude, signalling a mixed market.

On the other hand, the stability in Mandi's ingot prices was not mirrored in finished products, as both rebar and HR strip prices retreated by INR 100/t today. Rebar (Fe500) was assessed at INR 50,100/t ex-works, pressured by a sharp five-day decline of INR 700/t, while HR strip (patra) softened to INR 46,700/t ex-works amid ongoing low trading volumes.

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 $388/t, approximately INR 39,100/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 35,500/t DAP. Indicative prices of shredded from Europe stood at $405/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 16,450/t.

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

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