- Sponge prices decline by INR 300/t d-o-d
- Semis, finished steel prices decrease by INR 200-400/t today
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 38,400/t DAP on 12 May 2026.Scrap prices fell by INR 200-500/t in the region. Steel prices have continued tumbling over the last five days amid lackluster demand.
Mandi Gobindgarh’s secondary steel sector, a vital Indian production hub, faces multi-front pressures from sliding prices, sluggish finished steel sales, narrowing producer margins, and tightening scrap supply, fostering caution across the value chain. Persistent price declines are eroding mill viability, spurring unsold inventory build-up, while a localized ferrous scrap shortage adds “cost-push” burdens despite softened production-decoupling raw material costs from absent “demand-pull.”
Routine procurement has hit a standstill. Both distributors and end-users are adopting a “wait-and-watch” strategy, anticipating further price corrections before committing to bulk volumes.
A mill owner informed BigMint “The immediate outlook for the Mandi Gobindgarh market remains subdued. Without a significant uptick in infrastructure spending or a correction in scrap arrival rates, the regional steel industry is likely to remain under pressure. Market participants are keeping a close eye on upcoming infra projects and global scrap price movements for any potential cues of a trend reversal.”
Raw material
Sponge iron prices decreased by INR 300/t to INR 31,700/t DAP, while steel grade pig iron prices in Ludhiana eased by INR 100/t to 41,500/t in todays session. Buying activity is restricted to need-based, hand-to-mouth volumes as mills avoid stocking up in a falling market.
Steel market trends
In Mandi Gobindgarh, semi-finished steel (ingot) prices fell by INR 200/t d-o-d to INR 43,700/t DAP. In other major production centres, ingot prices declined by INR 100-500/t d-o-d. The steepest fall seen in the Ahmedabad market were ingot prices down by INR 500/t d-o-d.
In Mandi Gobindgarh, rebar (Fe500) prices declined by INR 400/t to INR 48,700/t ex-works today. HR strip (patra) prices fell by INR 300/t d-o-d to INR 45,100/t ex-works.
A local steel maker informed BigMint “Sales of TMT bars and patra remain on the downward side, with lackluster off-take from the construction and infrastructure sectors.”
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 5,200-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $382/t, approximately INR 38,851/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai fell by INR 100/t d-o-d to INR 34,400/t DAP. Indicative prices of shredded from Europe stood at $394/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 14,850/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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