India: BigMint's ferrous scrap index jumps INR 500/t d-o-d on supply concerns, steel price surge

• Scrap prices up amid tight availability, logistics disruptions
  
  
• Steel prices strengthen further on firm regional sentiment
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 500/t d-o-d to INR 38,300/tonne (t) DAP on 27 May 2026. A sharp price rise swept Mandi Gobindgarh today as raw-material and finished-steel values moved higher. Scrap and ingot-billet prices climbed around INR 500/t; finished steel rose nearly INR 400/t. Buying was strong in the morning before slowing marginally in the second half. However, scrap shortage still persisted in the market.

Labour shortfalls and slower-than-expected scrap inflows have affected trade in Mandi Gobindgarh. Logistics problems-intensified by persistent heatwave conditions-are hindering plant throughput and deliveries. Rising diesel costs are reducing mill margins, and concerns over import price volatility and geopolitics have kept importedscrap buyers out of the market, prompting many mills to boost sponge iron purchases from the Durgapur region.

Raw material

In Mandi, sponge iron (CDRI) prices improved by INR 250/t to INR 30,900/t DAP today, while steel grade pig iron prices in Ludhiana increased by INR 700/t to INR 43,500/t DAP.

Steel market

Ingot prices in the Mandi region strengthened by INR 500/t to INR 43,500/t during the latest pricereporting and normalisation cycle. Other markets recorded broader moves, with gains of INR 250-900/t.

Rebar (Fe500) in Mandi rose INR 400/t d-o-d to INR 48,400/t (exworks), supported by steady demand. HR strip (patra) led the rally, jumping INR 600/t to INR 46,800/t (exworks) after three days of firm buying pushed regional sentiment higher.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,000-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $370/t, approximately INR 37,650/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai fell by INR 500/t to INR 34,900/t DAP. Indicative prices of shredded from Europe stood at $390/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 14,300/t.

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

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