- Mills limit inventory build-up despite tight supply
- Finished steel prices ease on subdued demand
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 38,600/t DAP on 6 August 2026. Prices remained stable due to tight supply and need-based buying. Limited purchasing interest and the absence of strong upward triggers prevented price hikes.
Today, demand remained subdued across both the semi-finished and finished steel segments in Mandi Gobindgarh. As a major scrap-based secondary steel hub, the market is currently facing a dual constraint: weak downstream buying and disruptions in scrap availability.
Ongoing GST inspections have slowed the movement of scrap, while the shortage of suitable melting scrap has disturbed the normal procurement and trading cycle. Simultaneously, mills are adopting a cautious, need-based purchasing strategy, limiting inventory build-up despite supply-side tightness. This has kept overall market activity muted and prevented any clear price direction. Similar supply disruptions and GST verification checks have previously been reported as factors affecting scrap availability and mill procurement in the Mandi region.
Alternate raw material
Raw material trends were mixed today. Sponge iron (CDRI) prices in Mandi Gobindgarh remained unchanged d-o-d at INR 29,800/t DAP, indicating a balanced market with mills largely limiting procurement to immediate requirements. In contrast, steel-grade pig iron prices in Ludhiana increased by INR 400/t to INR 42,600/t DAP.
Steel market
Mandi Gobindgarh’s semi-finished steel market remained largely stable today, with ingot prices unchanged d-o-d at INR 42,600/t DAP. Prices have now held steady for the past three consecutive days, supported by raw material shortages and logistical constraints, which have limited downward pressure despite weaker market sentiment. In comparison, prices at other major steel-producing centres declined by around INR 100-200/t.
In the finished-steel segment, Fe500 rebar prices in Mandi Gobindgarh declined by INR 200/t d-o-d to INR 47,200/t ex-works, reflecting subdued buying interest and cautious market activity. However, HR strip (patra) prices remained stable at INR 47,600/t ex-works, indicating comparatively balanced supply-demand conditions in this segment.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 3,800-4,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 33,700/t (inclusive of freight). HMS (80:20) prices in Mumbai increased by INR 350/t d-o-d to INR 32,850/t DAP. Indicative prices of shredded from Europe stood at $390/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 13,150/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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