- Scrap shortage supports prices despite cautious mill buying
- Softer steel market limits upside as downstream demand remains subdued
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 37,900/t DAP on 31 July 2026. Prices increased by INR 200-300/t on a w-o-w basis, supported by A shortage of scrap in the local market further strengthened market sentiment, prompting furnaces to increase their reliance on sponge iron, with the current charge mix estimated at around 70% scrap and 30% sponge iron. However, overall demand remained largely limited to immediate requirements.
A mill owner informed BigMint, “Sponge iron prices increased by INR 100/t w-o-w to around INR 29,400/t DAP Mandi Gobindgarh, despite limited-to-moderate buying activity. The price uptick was primarily driven by tightening supply from the Odisha belt, the key sourcing region for Mandi Gobindgarh, where some plants are currently undergoing maintenance and have curtailed production. Reduced availability has supported sponge iron prices, while demand remained largely limited to immediate requirements.”
Market participants also indicated that concerns over GST-related issues have raised the possibility of a strike next week, although no official confirmation has been issued. Participants are closely monitoring developments, as any disruption could affect scrap movement and trading activity.
Raw materials, steel market trends
Sponge iron (CDRI) prices in Mandi declined d-o-d by INR 200/t at INR 29,400/t DAP, while w-o-w, prices increased by INR 380/t amid decent demand. Steel-grade pig iron prices in Ludhiana declined by INR 200/t at INR 41,800/t DAP and up by INR 300/t w-o-w.
In the steel segment, Ingot prices in Mandi Gobindgarh remained stable d-o-d at INR 42,100/t DAP, while prices were up INR 170/t w-o-w. Rebar (Fe500) prices in Mandi Gobindgarh remained stable d-o-d at INR 46,800/t ex-works and remained largely stable on a w-0-w basis with the same price range.
Overview of Alang market
Ship-breaking melting scrap prices in Alang, Gujarat, have extended their downward trend, declining by a cumulative INR 1,000/t over the past two trading sessions. HMS (80:20) fell by INR 500/t d-o-d on 31 July to INR 33,300/t ex-yard and eased by another INR 500/t on 1 August to INR 32,800/t ex-yard. The correction was driven by flood-hit yard operations, subdued buying interest, and weakness in downstream steel markets, which outweighed support from constrained scrap availability. On a week-on-week basis, however, the market remained largely range-bound, with HMS (80:20) trading within INR 33,500-33,800/t before the latest correction.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,200-4,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $332/t, approximately INR 34,100/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable day-on-day at INR 32,600/t DAP. Indicative prices of shredded from Europe stood at $395/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 13,100/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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