India: BigMint's scrap index holds steady; weak steel demand, tight supply persists

• Scrap prices remain stable on constrained supply
  
  
• Finished steel demand weakens, prices under pressure
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 39,600/tonne (t) DAP on 4 May 2026.

Tight scrap supply in Mandi Gobindgarh, driven by sluggish arrivals from neighbouring states and weak imported scrap purchases, has kept supplier prices steady. Semi-finished steel prices fell INR 250/t day-on-day amid tepid demand.

Mandi Gobindgarh, a major Indian secondary steel hub, is grappling with a steel scrap shortage despite mills securing decent procurement volumes. Slow demand for semi-finished and finished steel products has prolonged liquidity constraints in the market, compounded by slight inventory buildup at local mills.

Adding to the pressure, labour shortages and logistical bottlenecks are hampering operations in the region.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh decreased by INR 100/t d-o-d to INR 33,000/t DAP. Similarly, steel-grade pig iron prices in Ludhiana remained steady at INR 42,500/t DAP.

Steel market

In Mandi Gobindgarh, semi-finished steel ingot prices fell INR 250/t day-on-day to INR 45,300/t DAP, reflecting soft demand across the steel chain. Other major production centres saw ingot prices decline by INR 100-400/t d-o-d amid similar pressures.

Rebar (Fe500) prices in Mandi Gobindgarh dropped INR 100/t to INR 50,400/t ex-works today on subdued end-user demand, while HR strip (patra) eased INR 200/t d-o-d to INR 47,000/t ex-works, underscoring 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 5,600-6,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $390/t, approximately INR 39,400/t (inclusive of freight).Today, HMS (80:20) prices in Mumbai fell by INR 300/t d-o-d to INR 34,700/t DAP. Indicative prices of shredded from Europe stood at $406/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 16,100/t.

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

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