- Softer steel prices limit upside from tight supply
- Sponge iron prices drop, reflecting weak mill demand
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 37,900/t DAP on 16 June 2026, as persistent supply tightness and logistical challenges continued to support offers despite subdued downstream demand. Scrap prices have now remained unchanged for a second consecutive day, with market participants reporting limited material availability and ongoing GST verification checks that have constrained supply.
A mill owner informed BigMint, “Trading activity across the key secondary steel hub remained largely muted, with weak demand for both semi-finished and finished steel limiting fresh procurement. Scrap sellers maintained firm offers due to regional shortages and supply-side disruptions, while mills largely stayed on the sidelines awaiting clearer buying signals and improved material availability.”
Alternative raw material prices
Sponge iron (CDRI) in Mandi Gobindgarh eased INR 200/t d-o-d to INR 30,100/t DAP, while steel‑grade pig iron in Ludhiana slipped INR 100/t to INR 41,400/t DAP. These softer raw material rates reflect limited buying appetite across secondary steel buyers.
Steel market trends
Semi‑finished ingot prices in Mandi Gobindgarh fell INR 100/t to INR 42,800/t DAP, with other production hubs seeing declines of INR 100-400/t. Rebar (Fe500) in Mandi dropped INR 200/t to INR 47,600/t ex‑works and HR strip (patra) eased INR 200/t to INR 46,800/t ex‑works, underscoring subdued trade and a broader cooling trend.
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 4,900-5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $348/t, approximately INR 35,200/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained steady at INR 33,250/t DAP. Indicative prices of shredded from Europe stood at $392/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 14,750/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