- Scrap prices supported by tight availability
- Softened steel prices, labor shortages continue to squeeze industry margins
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 39,000/t DAP on 8 May 2026.The regional scrap index witnessed a marginal uptick of INR 100-150/t this week, a movement fueled primarily by acute material shortages rather than market strength. Despite the slight price appreciation, the broader steel ecosystem remains stifled by a trifecta of weak mill buying, sluggish finished steel demand, and ongoing labor shortages.
A mill owner informed BigMint “Domestic steel scrap demand is projected to remain firm in the near term as local large mills pivot away from the imported scrap, deterred by escalating geopolitical tensions and the superior price viability of domestic alternatives. However, the broader market outlook remains cautious; while a surge in restocking by finished steel traders provides an immediate cushion, the imminent arrival of the monsoon season is expected to disrupt consumption patterns and potentially shift current price trends.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh remained unchanged d-o-d at INR 32,400/t DAP, declined by INR 240/t on a weekly basis. Meanwhile, steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 31,800/t DAP, while remaining stable on a weekly basis.
Steel market trends
In Mandi Gobindgarh, ingot prices slipped by INR 100/t to INR 44,400/t DAP amid reduced transaction volumes. In other major production centers, prices fell by INR 150-900/t day on day. On a weekly basis, ingot prices in Mandi were decreased by INR 380/t.
Rebar (Fe500) prices in Mandi eased by INR 400/t to INR 49,500/t, while weekly prices dipped by INR 300/t amid persistently weak trade. HR strip (patra) prices also declined by INR 400/t to INR 45,800/t ex-works.
Overall, cautious buying and subdued demand continued to weigh on market momentum across key segments.
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 $385/t, approximately INR 38,650/t (inclusive of freight). HMS (80:20) prices in Mumbai fell by INR 100/t to INR 34,500/t DAP. Indicative prices of shredded from Europe stood at $395/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.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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