India: BigMint's scrap index rises d-o-d but declines w-o-w on subdued steel demand

• Rebar prices in Mandi drop INR 1,150/t w-o-w
  
  
• Steel mills face squeezed margins, inventory pressure
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 100/t day-on-day (d-o-d) to INR 38,400/t DAP on 15 May 2026. Despite the marginal daily uptick, scrap prices remained under pressure on a weekly basis, declining by INR 870-1,000/t w-o-w amid subdued finished steel demand and cautious procurement by the secondary steel mills.

Mandi Gobindgarh, India's benchmark secondary steel hub, continued to witness pressure as falling finished steel prices weighed on buying interest. However, some recovery emerged since yesterday evening, supported by modest bookings in semi-finished and finished steel prices. Market participants said that mills remain under pressure due to squeezed margins, delayed receivables, labour shortages, and constrained working capital.

A local mill owner informed BigMint, "Scrap arrivals have slowed as suppliers are holding material amid falling steel prices, weak mill payments, and margin pressure. Imported scrap remains largely absent in Mandi due to unviable pricing and geopolitical uncertainties. Mills are increasingly depending on domestic scrap and sponge iron during periods of tight scrap availability."

Alternative raw materials

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 31,500/t DAP but declined INR 950/t w-o-w, reflecting softer regional sentiment. Meanwhile, steel-grade pig iron prices in Ludhiana rose by INR 100/t d-o-d to INR 41,800/t DAP, although prices were still lower by INR 450/t compared with last week.

Steel market

Semi-finished steel (ingot) prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 44,800/t DAP amid moderate buying activity. Across other major production hubs, ingot prices rose by INR 100-500/t d-o-d. However, ingot prices in Mandi fell by nearly INR 950/t w-o-w.

Finished steel prices witnessed a slight improvement. Rebar (Fe500) prices in Mandi Gobindgarh increased by INR 100/t to INR 48,700/t ex-works today, though prices remained lower by INR 1,150/t w-o-w.

Overview of Mumbai market

Rebar (Fe 500) prices on the Mumbai market remained largely stable today at around INR 47,900/t ex-works. Buying activity was low to moderate during the day, with procurement largely restricted to need-based requirements. Overall market participation remained limited, with only moderate enquiries reported.

On the raw material side, HMS (80:20) scrap was assessed at INR 34,700/t DAP, with the scrap-billet conversion spread hovering around INR 8,100/t.

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 $368/t, approximately INR 37,580/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai increased by INR 300/t to INR 34,700/t DAP. Indicative prices of shredded from Europe stood at $386/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 14,350/t.

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

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