India: BigMints ferrous scrap index softens on weak steel demand

• Scrap arrivals slow down but fail to support prices
  
  
• Mills face inventory pressure, reduce scrap intake
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, softened by INR 200/tonne (t) d-o-d to INR 38,900/t DAP on 23 April 2026. Overall, scrap prices in the region declined by INR 100-200/t d-o-d.

Today, scrap arrivals in Mandi Gobindgarh were slightly slow compared to last week. However, on account of weak demand in the semi-finished and finished steel segments, where prices eased by INR 200/t, mills refrained from paying premium rates for scrap. As a result, sellers reduced their offers today. Additionally, labour issues are intensifying in Mandi and Ludhiana, with mills in the northern cluster operating with limited manpower.

A mill owner informed BigMint, "Amid limited demand and mild inventory pressure at mills, many have reduced scrap buying volumes. Local scrap suppliers in Mandi are also grappling with overburdened credit lines."

Alternative raw material prices

The alternative metallics segment also showed a cautious trend. Sponge iron (CDRI) prices in Mandi Gobindgarh fell by INR 100/t to INR 33,100/t DAP, reflecting subdued demand. Meanwhile, steel-grade pig iron prices in Ludhiana remained stable at INR 42,200/t DAP, with limited buying activity.

Steel market trends

Weak downstream demand weighed on steel prices, further impacting scrap sentiment. Ingot prices in Mandi Gobindgarh declined by INR 200/t to INR 45,000/t DAP on reduced transaction volumes. Rebar (Fe500) prices inched down by INR 100/t to INR 49,400/t ex-works, while HR strip prices softened by INR 200/t to INR 47,200/t ex-works. Market participants reported that subdued finished steel offtake restricted aggressive scrap bookings, keeping procurement largely need-based.

Overview of Mumbai steel market

Rebar (Fe 500) prices on the Mumbai IF route declined by around INR 100/t to approximately INR 51,100/t ex-works. Buying activity remained muted throughout the day, with need-based buying observed in the market, as a good quantity of material had already been procured in the previous session, resulting in very limited enquiries.

With sufficient inventory in hand, buyers largely stayed away from fresh bookings, keeping trade volumes low. Mills continued to focus on dispatching earlier orders, while selling pressure persisted amid the absence of bulk deals in recent sessions.

On the raw material side, HMS (80:20) scrap was assessed at INR 35,500/t DAP, with the scrap-billet conversion spread hovering around INR 9,800/t.

Upcoming scrap auctions

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 $380-$382/t, approximately INR 38,200/t (inclusive of freight). HMS (80:20) prices in Mumbai up by INR 200/t d-o-d to INR 35,500/t DAP. Indicative prices of shredded from Europe stood at $395/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 16,000/t.

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

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