- Sponge iron prices increase by INR 300/t d-o-d
- Steel, raw material prices rise on improving sentiment
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 600/t d-o-d to INR 38,500/tonne (t) DAP on 3 Aug 2026. Scrap prices rose by INR 500-600/t in today’s trading session amid a scrap shortage, while GST checks squeezed scrap arrivals in the region.
A mill owner informed BigMint:”Scrap shortage, GST checks and logistics-related disruptions continued to weigh on Mandi’s steel market, lending support to scrap prices through the day. Sentiment remained firm as semi-finished and finished steel prices also rose by around INR 300/t d-o-d, indicating broader market support.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 300/t day on day to INR 29,700/t DAP, reflecting a firmer undertone in the local market. At the same time, steel-grade pig iron prices in Ludhiana increased by INR 400/t day on day to INR 42,000/t DAP, supported by improving trade sentiment and tighter supply conditions.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh rose by INR 300/t d-o-d to INR 42,600/t DAP, while other major production hubs also recorded gains of INR 100-800/t in today’s trading session. In the finished-steel segment, rebar (Fe500) prices in Mandi Gobindgarh jumped by INR 300/t to INR 47,200/t ex-works, while HR strip (patra) prices also improved by INR 300/t d-o-d to INR 47,600/t ex-works. Local steelmakers said finished-steel demand improved slightly in Mandi during today’s session.
Overview of Alang market
Alang’s ship-breaking scrap market softened on 3 August, as HMS (80:20) slipped by INR 300/t d-o-d to INR 32,500/t ex-yard. Although monsoon disruptions have constrained ship-breaking activity and tightened processed scrap supply, the shortage has not been enough to offset subdued steel demand and bearish price expectations.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,200-4,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 33,745/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable day-on-day at INR 32,600/t DAP, supported by decent regional scrap demand. Indicative prices of shredded from Europe stood at $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 13,300/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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