India: BigMint's ferrous scrap index remains stable d-o-d amid GST checks, tighter supply

• Weaker finished steel prices prevent price gains from tight supply
  
  
• Smaller mills operate below capacity amid raw material shortages
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained steady d-o-d at INR 37,800/tonne (t) DAP on 9 June 2026. Scrap prices remained stable in the region, primarily due to GST inspections and tighter scrap supplies, even as steel prices softened due to subdued demand.

The Mandi Gobindgarh secondary steel market remained cautious this week, with trading activity affected by supply-side disruptions rather than weak demand alone. Ongoing GST enforcement, constrained scrap availability, and logistics challenges continued to influence procurement decisions and mill operations. While large integrated mills maintained stable production, small and medium-sized units operated below capacity due to inadequate raw material availability.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 100/t d-o-d to INR 30,600/t DAP. In contrast, steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 41,600/t DAP amid weak buying interest.

Steel market

In the Mandi region, steel ingot prices remained stable d-o-d at INR 42,900/t DAP during the price reporting and normalisation phase. However, prices in other key markets decreased by INR 100-300/t today.

Similarly, in the rebar (Fe500) segment, Mandi prices decreased by INR 100/t d-o-d to INR 47,900/t exw, amid limited demand. HR strip (patra) prices remained steady d-o-d at INR 47,000/t exw in the region.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,900-5,300/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $352-$354/t, approximately INR 35,950/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai eased by INR 50/t to INR 33,550/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 14,450/t.