- Rise in steel prices pushes up scrap offers despite heavy rains
- Some sellers forced to offer discounts amid surplus scrap supply
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, inched up by INR 100/tonne (t) d-o-d to INR 38,800/t DAP on 23 January 2026. Moreover, the index increased by INR 1,100/t w-o-w.
Persistent rainfall today kept Mandi Gobindgarh’s trading sessions inactive in both halves, with only muted buying interest emerging. Still, scrap prices edged higher by INR 100-300/t, driven solely by a d-o-d rise in semi-finished and finished steel of around INR 350-500/t.
However, domestic scrap arrivals remained in surplus, forcing some suppliers to offer deeper discounts — handing buyers a prime opportunity to trim purchase costs. Meanwhile, the imported scrap segment was inactive, squeezed by a strengthening US dollar and ample local supply.
Overall, the steel market stayed upbeat this week, fuelled by improved demand from neighbouring states mid-week and bullish price hikes in steelmaking raw materials. This positive sentiment kept the market buoyant.
However, local mill owners remain cautious about the near term. With secondary steel prices already at elevated levels, buyers are hesitant to make purchases.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 100/t d-o-d to INR 30,600/t (DAP). Prices improved by INR 900/t w-o-w.
Steel-grade pig iron prices in Ludhiana rose by INR 50/t d-o-d to INR 39,650/t (DAP), while recording a w-o-w increase of INR 185/t.
Steel market dynamics
In the semi-finished steel segment, ingot prices in Mandi Gobindgarh climbed up by INR 350/t d-o-d to INR 44,600/t DAP, while prices across other major production hubs strengthened by INR 100-550/t over the same period. On a w-o-w basis, ingot prices in Mandi rose by INR 1,100/t.
Rebar (Fe 500) prices in Mandi Gobindgarh surged by INR 500/t d-o-d to INR 49,300/t. On a w-o-w basis, prices increased by INR 1,200/t.
HR strip (patra) prices jumped INR 500/t d-o-d to INR 45,000/t, while on a w-o-w basis, prices rose by INR 820/t.
Overview of Jalna market
In the western India-based Jalna market, billet prices edged up by INR 100/t d-o-d to INR 43,400/t, while rebar prices increased by INR 100/t to INR 49,600/t. Meanwhile, HMS (80:20) prices remained stable at INR 31,400/t. According to sources, trading activity in finished steel showed some improvement compared with the past couple of days. Scrap supply was also slightly disrupted by vehicle checks at regional borders.
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 5,400-5,800/t
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $335/t, approximately INR 33,070/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $363/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 15,900/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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