India: BigMint's ferrous scrap index stable, weak steel demand weighs on market

• Moderate scrap demand amid slow arrivals
  
  
• Finished steel prices decline, pressuring margins
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 39,400/tonne (t) DAP on 6 May 2026.

Scrap demand in Mandi Gobindgarh, a vital Indian secondary steel hub, remained moderately robust with mildly slow arrivals, yet tepid steel demand and mild finished steel inventory pressure curbed market momentum; semi-finished prices stayed mostly stable from labour shortages and mild scrap shortages, compounded by slow and weak mill demand squeezing margins, scrap suppliers maintaining price levels, and mill owners procuring sponge as a preferable option.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh fell by INR 100/t d-o-d to INR 32,700/t DAP. Similarly, steel-grade pig iron prices in Ludhiana remained steady at INR 42,200/t DAP.

Steel market trends

In Mandi Gobindgarh, semi-finished steel (ingot) prices remained unchanged d-o-d at INR 44,900/t DAP, reflecting soft steel demand. In other major production centres, ingot prices declined by INR 100-500/t d-o-d.

In Mandi Gobindgarh, rebar (Fe500) prices declined by INR 200/t to INR 50,000/t ex-works today, reflecting subdued trading volumes as TMT prices in Mandi have declined by INR 400/t within three working days. HR strip (patra) prices fell by INR 200/t d-o-d to INR 46,500/t ex-works amid ongoing regional weakness.

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 5,300-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $388/t, approximately INR 38,975/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 34,700/t DAP. Indicative prices of shredded from Europe stood at $400/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 15,800/t.

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

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