- Sponge iron prices decline by INR 300/t d-o-d
- Finished steel weakness pressures scrap sentiment
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 39,200/t DAP on 7 May 2026. Scrap prices decreased by INR 200-400/t d-o-d as subdued finished steel demand and limited buying activity weighed on overall sentiment. Market participants largely refrained from bulk procurement, restricting purchases to immediate requirements.
A mill owner informed BigMint: “Slow demand for finished steel continues to build inventory pressure on mills in Mandi Gobindgarh, exacerbating ongoing liquidity challenges and keeping overall market sentiments cautious. Labour shortages, coupled with rising scrap prices, are intensifying margin headaches for steelmakers in the region. In the near term, any escalation in scrap shortages could prompt mills to increase their sponge iron ratio for steelmaking. For now, producers are grappling with persistent sales pressure.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh decreased by INR 300/t d-o-d to INR 32,400/t DAP. In contrast, steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 42,000/t DAP.
Steel market trends
In Mandi Gobindgarh, semi-finished steel (ingot) prices moved down by INR 400/t to INR 44,500/t DAP, reflecting lacklustre steel demand. In other major production centres, ingot prices declined by INR 200-500/t d-o-d.
In Mandi Gobindgarh, rebar (Fe500) prices declined by INR 100/t to INR 49,900/t exw today, reflecting subdued trading volumes. HR strip (patra) prices fell by INR 300/t d-o-d to INR 46,200/t exw.
Over the past few days, rebar has eased by a cumulative INR 600/t, while patra prices have dipped INR 1,000/t, driven by softening demand.
Overview of Alang market
In Alang, Gujarat, ship-breaking melting scrap prices dropped INR 200/t d-o-d on 7 May. HMS (80:20) assessment was INR 37,000/t ($390/t) ex-yard-yesterday amid need-based deals in semi-finished and finished steel. Moderate scrap trade prompted suppliers to cut offers today.
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 5,000-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $386/t, approximately INR 38,600/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai fell by INR 100/t to INR 34,600/t DAP. Indicative prices of shredded from Europe stood at $398/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 15,550/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
Leave a Reply