- Sponge iron prices increase by INR 300/t d-o-d
- Semis, finished steel prices jumps INR 200-400/t today
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 400/tonne (t) d-o-d to INR 38,100/t DAP on 16 March 2026.
The Mandi Gobindgarh scrap market surged INR 400-500/t today, primarily driven by sluggish inflows from neighboring states, GST audits disrupting regional steel workflows, and primary producers’ finished steel price hikes compelling secondary makers to lift offers amid bullish sentiment.
“The ongoing global LNG crisis, triggered by the middle east production halt, has driven LPG prices up. This directly inflates scrap cutting costs by INR 200-300 per tonne, with propane and industrial gas shortages hitting secondary steel units hardest. Last week, scrap prices in Mandi rose by INR 400-650/t, while today’s Mandi Gobindgarh market has already surged another INR 400-500/t,” a mill owner told BigMint.
Meanwhile, a scrap traders said, “scrap sellers are raising offers in LMS and HMS segments to offset cutting expenses, signaling tighter supply and upward pressure on billets/rebars. Major mills continue full production by securing scrap at extra premiums to keep furnaces running, while medium and small scrap mills struggle to procure material at viable conversion margin prices.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up INR 300/t d-o-d to INR 32,700/t DAP. In contrast, steel-grade pig iron prices in Ludhiana fell by INR 100/t to INR 39,800/t DAP.
Steel market trends
In Mandi Gobindgarh, semi‑finished steel (ingot) prices improved by INR 400/t d-o-d to INR 44,400/t DAP, reflecting moderate demand. In other major production centres, ingot prices similarly increased by INR 100-400/t d-o-d.
Rebar (Fe500) prices in Mandi Gobindgarh increased by INR 200/t to INR 49,400/t exw, today.
Overview of Alang market
On 16 March, 2026, Alang’s ship-breaking HMS (80:20) scrap shed INR 200/t d-o-d to INR 34,300/t ex-yard, per BigMint data. Regional semi-finished steel dipped INR 100-200/t on subdued prior sessions, prompting offer cuts amid sustained demand from Bhavnagar IF mills.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 6,100-6,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $355/t, approximately INR 35,046/t (inclusive of freight). HMS (80:20) prices in Mumbai decreased by INR 200/t d-o-d to INR 33,700/t DAP. Indicative prices of shredded from Europe stood at $370/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 15,250/t.
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To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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