India: BigMint's scrap index drops by INR 200/t d-o-d on weak steel demand, margin pressure

• Sponge iron prices decline by INR 200/t today
  
  
• Semis, finished steel prices dip INR 200-400/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 39,400/t DAP on 5 May 2026. Scrap prices in the region fell by INR 200-300/t d-o-d amid weak semi-finished and finished steel demand and continuously falling prices, squeezing profit margins for mills as scrap suppliers reduced their offers today.

A bid-offer disparity emerged in the Mandi steel market, as ingot prices fell by around INR 400/t d-o-d while scrap suppliers reduced prices only marginally amid shortages.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh moved down by INR 200/t d-o-d to INR 32,800/t DAP. Similarly, steel-grade pig iron prices in Ludhiana decreased by INR 300/t to INR 42,000/t DAP.

Steel market trends

In Mandi Gobindgarh, semi-finished steel (ingot) prices declined by INR 400/t to INR 44,900/t DAP, reflecting soft steel demand. In other major production centres, ingot prices declined by INR 100-600/t d-o-d. Ludhiana ingot prices saw their most significant single-day drop of around INR 600/t.

In Mandi Gobindgarh, rebar (Fe500) prices decreased by INR 200/t to INR 50,200/t exw today, reflecting subdued trading volumes. HR strip (patra) prices fell by INR 300/t d-o-d to INR 46,700/t exw 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 $389/t, approximately INR 39,300/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 35,700/t DAP. Indicative prices of shredded from Europe stood at $404/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 15,850/t.

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

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