- Eid holidays, GST checks, slow arrivals tighten supply
- Mills stop buying oversized scrap amid gas shortages
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 300/tonne (t) d-o-d to INR 38,100/t DAP on 20 March 2026. Scrap prices rose by INR 150-330/t this week, driven by gas shortages and slow scrap arrivals.
In Mandi Gobindgarh, most mills halted procurement of oversized steel scrap amid the gas crisis, while scrap sellers raised HMS and LMS prices by INR 300-500/t.
A mild scrap shortage arose, driven by Eid holidays, slow arrivals from neighboring regions, and GST checks disrupting workflows.
A mill owner informed BigMint, “The near-term outlook suggests rising oil and gas prices will significantly impact India’s steel industry, driving up raw material costs through the supply chain and ultimately boosting finished steel prices.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 100/t d-o-d to INR 32,600/t (DAP). W-o-w, prices remained stable.
Steel-grade pig iron prices in Ludhiana remained steady d-o-d at INR 39,600/t (DAP), while prices dipped by INR 400/t w-o-w amid limited trades.
Steel market dynamics
In the semi-finished steel segment, ingot prices in Mandi Gobindgarh climbed up by INR 100/t d-o-d to INR 44,300/t DAP, while prices across major production hubs strengthened by INR 100-250/t over the same period. On a w-o-w basis, ingot prices in Mandi fell by INR 100/t.
Rebar (Fe 500) prices in Mandi Gobindgarh inched up by INR 100/t d-o-d at INR 49,600/t. On a w-o-w basis, prices increased by INR 130/t. Similarly HR strip (patra) prices rose by INR 300/t to INR 46,300/t today. Prices surged by INR 165/t w-o-w.
Overview of Alang market
Alang’s ship-breaking melting scrap prices gained INR 500/t d-o-d as per BigMint’s 20 March assessment, with HMS (80:20) at INR 35,000/t exy. Regional semi-finished and finished steel trading picked up in yesterday’s late session. Decent scrap buying interest today led suppliers to raise their offers.
A ship-breaking company stated, “Due to the ongoing gas crisis, scrap prices have already risen. If the war continues for two more weeks, there will be a severe impact on the steel industry. Alang ship-breaking activity could drop to around 40-50% in the near term, and scrap prices will continue to trend upward.”
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 5,900-6,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $366/t, approximately INR 36,550/t (inclusive of freight). HMS (80:20) prices in Mumbai increased by INR 400/t d-o-d to INR 34,200/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 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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