- Scrap shortage keeps market sentiment firm
- Sponge iron offers better commercial realisations
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable at INR 37,500/tonne (t) DAP on 20 July 2026, with moderate procurement activity and cautious buying offsetting tightening scrap availability. Market participants expect domestic scrap prices to rise by INR 200-300/t in the coming days due to limited availability of end-cutting scrap, although weak finished steel demand continues to restrain aggressive purchasing.
Steelmakers in Mandi Gobindgarh continued sourcing sponge iron from Durgapur and Ramgarh owing to better commercial realisations. While major secondary mills are operating at around 90% capacity, medium and small mills have reduced production to 30-40% amid subdued order inflows.
Scrap suppliers raised offers for select grades during the day, but the absence of major bulk finished steel deals kept transaction activity largely muted.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 29,300/t DAP. While steel grade pig iron in Ludhiana held steady at INR 40,400/t DAP amid moderate buying today.
Steel market trends
Semi-finished steel (ingot) prices in Mandi Gobindgarh declined by INR 50/t d-o-d, settling at INR 42,050/t DAP. While, in the rebar (Fe500) segment, Mandi prices increased by INR 200/t d-o-d to INR 47,100/t exw.
Overview of Alang market
The shipbreaking melting scrap market in Alang, Gujarat, was steady on 20 July. HMS (80:20) was assessed at INR 34,000/t (USD 353/t) ex-yard. While finished steel demand remains subdued, higher domestic steel prices have supported sentiment across the recycling sector. Elevated imported scrap replacement costs have also encouraged buyers to prioritise locally available material, providing continued support to Alang recyclers despite cautious downstream demand.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,300-4,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $338/t, approximately INR 34900/t (inclusive of freight). HMS (80:20) in Mumbai remained stable at INR 31,600/t DAP, while billet and rebar prices remained stable. Indicative prices of shredded from Europe stood at $392-$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 14,200/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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