India: BigMint's ferrous scrap index rises INR 300/t d-o-d, tight supplies support prices

• GST inspections tighten domestic scrap availability
  
  
• Weak finished steel demand weighs on market sentiment
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/t d-o-d to INR 38,100/tonne (t) DAP on 10 June 2026.

Indias key secondary steel hub, Mandi Gobindgarh, witnessed an increase in prices across the raw-to- semi-finished steel segments, with prices rising by INR 200-400/t. While the uptick signals a momentary relief for sellers, the broader market sentiment remains cautious as end-user demand for finished products stays shrouded in uncertainty.

Domestic scrap availability remains restricted. The ongoing GST inspections have slowed down the movement of material, as traders and recyclers exercise caution with documentation and compliance.

A mill owner informed BigMint: "The market remains in a wait and watch mode. While the price increase reflects the immediate tightness in raw materials, the sustainability of these rates depends on whether the construction sector resumes active buying post-harvest and pre-monsoon."

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 30,600/t DAP. In contrast, steel-grade pig iron prices in Ludhiana dropped by INR 100/t d-o-d to INR 41,550/t DAP.

Steel market

In Mandi, steel ingot prices rose by INR 250/t to INR 43,200/t DAP during the price reporting and normalization phase. Other major markets recorded increases of INR 100-300/t today.

In the rebar (Fe500) segment, Mandi prices eased by INR 100/t d-o-d to INR 47,800/t exworks, reflecting subdued demand. Meanwhile, HR strip (patra) in the region firmed by INR 200/t to INR 47,200/t exworks.

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 $354/t, approximately INR 36,000/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai eased by INR 50/t to INR 33,500/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 14,700/t.

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

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