- Arrivals improve, pushing suppliers to trim offers
- Mills lift sponge iron usage amid tight scrap supply
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 100/tonne (t) d-o-d to INR 37,800/t DAP on 22 June 2026. In the region, weak end-user demand kept pressure on the key secondary steel market, Mandi Gobindgarh, today, prompting sharp price cuts of INR 100-200/t across scrap and finished steel grades. Arrivals were decent after relief from GST inspections, which encouraged some suppliers to trim offers.
However, scrap supply remained on the tighter side, leading some medium-scale mills to increase sponge iron in their charge mix to around 35-40%. Meanwhile, larger mills continued to prefer scrap for around 75-80% of their charge mix and the rest sponge iron, with some paying additional premiums to secure scrap.
With muted enquiries, steel producers are running cautious schedules, and the near-term outlook remains range-bound, with further corrections possible unless construction or infrastructure orders pick up.
Raw material
Sponge iron (CDRI) prices in Mandi fell by INR 100/t d-o-d to INR 29,900/t DAP. Pig iron prices in Ludhiana remained stable today at INR 41,700/t DAP. Sponge iron consumption in Mandi has risen noticeably, with several steelmakers reporting consistent arrivals from Durgapur and healthy procurement levels at local mills.
Steel market trends
Semi-finished steel prices reflected a softer trend across regions. Ingot prices in Mandi Gobindgarh eased by INR 150/t d-o-d to INR 42,700/t DAP, while other major production centres reported declines of INR 100-300/t. Rebar (Fe500) prices in Mandi declined by INR 100/t to INR 47,500/t ex-works, whereas HR strip (patra) prices dipped by INR 200/t to INR 46,400/t ex-works.
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 4,700-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $343/t, approximately INR 34,750/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 33,000/t DAP. Indicative prices of shredded from Europe stood at $383/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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