- Steel demand picks up today amid power cut-driven supply concerns
- Semis, finished steel prices decline w-o-w amid subdued demand
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/t d-o-d to INR 37,500/tonne (t) DAP on 17 July 2026. However, the index dipped by INR 100/t w-o-w; prices of other grades remained stable.
Mandi, a key secondary-steel hub, recorded a mild softening in scrap and finished steel demand during the week, with prices easing by about INR 100-250/t w-o-w. Scrap buying interest remained selective, with buyers monitoring freight and GST developments, keeping overall market sentiment cautious.
Moreover, a mill owner informed BigMint, “Today in Mandi, spot demand for steel picked up, partly driven by power cuts, which prompted buyers to secure material amid supply concerns.” The d-o-d increase in scrap prices can be attributed to this slight recovery in steel demand.
Imported scrap remained unviable for Mandi steelmakers as bid-offer gaps, geopolitical tensions, and a stronger dollar pushed up landed costs. As a result, local mills favoured domestic scrap and sponge iron purchases; these domestic sources are likely to remain the preferred, reliable feedstock for steelmaking in the near term. Market participants expect this trend to continue until imported scrap becomes competitively priced or exchange-rate and geopolitical pressures ease.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 300/t d-o-d to INR 29,200/t (DAP). Prices dipped by INR 250/t w-o-w.
Steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 40,700/t (DAP), while prices softened by INR 200/t w-o-w amid limited demand.
Steel market
Semi‑finished steel (ingot) prices in Mandi Gobindgarh rose by INR 150/t d-o-d to INR 42,000/t DAP. Other major production hubs saw increases of INR 100-700/t in today’s trading session. However, w-o-w, regional ingot prices eased by INR 230/t despite improved spot demand observed in today’s market.
Rebar (Fe500) prices in Mandi Gobindgarh inched up by INR 100/t d-o-d to INR 46,800/t ex-works. Meanwhile, w-o-w prices eased by INR 180/t.
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 4,300-4,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $336-$338/t, approximately INR 34,730/t (inclusive of freight). HMS (80:20) in Mumbai rose by INR 250/t d-o-d to INR 31,600/t DAP as scrap shortages and rain‑related disruption to collection tightened supply in the region, while billet and rebar prices also improved. Indicative prices of shredded from Europe stood at $390-$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 14,250/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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