India: BigMint's ferrous scrap index surges INR 400/t on improved steel demand

• Scrap index gains on stronger finished steel prices
  
  
• Domestic scrap shortage keeps market sentiment firm
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 400/t d-o-d to INR 38,100/tonne (t) DAP on 3 June 2026.

Today in the Mandi Gobindgarh steel market, demand for scrap improved, with finished-steel premiums rising by approximately INR 300-500/t across all segments. Local mills expect steel prices to remain range-bound this week, with ingot/billet quoted around INR 43,000-43,500/t

A shortage of domestic scrap persists due to slower arrivals from neighbouring regions and reduced availability of imported scrap. To make up for the shortfall, mills are actively procuring sponge iron from Durgapur as an alternative to imported material.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 30,600/t DAP. However, steel-grade pig iron prices in Ludhiana also remained unchanged todaY at INR 42,600/t DAP.

Steel market

In the Mandi region, steel ingot prices climbed by INR 400/t to INR 42,700/t during the price reporting and normalisation phase. However, prices in other key markets rose INR 100-500/t.

Similarly, in the rebar (Fe500) segment, Mandi prices rose by INR 300/t d-o-d to INR 48,000/t exw, supported by moderate demand. HR strip (patra) prices significantly improved by INR 400/t to INR 46,700/t exw in the region.

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 4,900-5,300/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $360/t, approximately INR 36,750/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 34,100/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 14,300/t.

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

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