- GST checks disrupt scrap inflows into Mandi
- Weak demand keeps secondary steel market cautious
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 38,500/tonne (t) DAP on 14 August 2026. However, the index dipped by INR 260/t w-o-w; prices of other grades also declined by INR 230/t.
The secondary steel market in Mandi Gobindgarh remained under pressure this week, primarily due to ongoing GST inspections, logistics-related disruptions and weak scrap arrivals. Trade sentiment stayed cautious, with most transactions limited to need-based procurement as frequent GST raids and vehicle checks slowed scrap movement into Punjab, prompting some suppliers to divert material to neighbouring states. Steel makers are hoping for a minor improvement in market tone next week, supported by tighter scrap availability and lower operating rates that could help stabilise prices. However, traders caution that any meaningful recovery will depend on clearer GST enforcement norms, smoother logistics and a pick-up in finished steel demand, which has so far remained muted amid monsoon-related slowdown and cautious end-user buying.
From the raw material side, scrap and sponge iron prices declined by roughly INR 120-260/t week-on-week, while finished long steel prices in the Mandi belt fell by around INR 200/t on average. Several furnace and induction furnace operators reported slower scrap inflows and partial production cuts, citing narrow margins and a persistent gap between buyer bids and seller offers.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh remained balanced d-o-d at INR 29,800/t (DAP). Prices dipped by INR 120/t w-o-w.
Steel-grade pig iron prices in Ludhiana inched up by INR 200/t d-o-d to INR 42,500/t (DAP), while prices remained stable w-o-w.
Steel market
Semi‑finished steel (ingot) prices in Mandi Gobindgarh remained unchanged d-o-d at INR 42,500/t DAP. Other major production hubs saw decreases of INR 50-300/t in today’s trading session. However, w-o-w, regional ingot prices eased by INR 200/t amid limited buying observed in the current week.
Rebar (Fe500) prices in Mandi Gobindgarh remained firm d-o-d at INR 47,300/t ex-works. Meanwhile, w-o-w prices eased by INR 180/t.
Overview of Alang market
Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, rose by INR 500/t d-o-d to INR 33,800/t ex-yard on 14 August 2026, while remaining largely stable w-o-w within the INR 32,500-33,800/t range. On a w-o-w basis, improved bookings of finished and semi-finished steel, easing rainfall and stronger construction activity supported market sentiment and mill realisations. However, higher scrap availability from recently beached vessels and cautious, requirement-based procurement limited upside. Prices are expected to remain firm in the near term.
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 3,800-4,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $328-$330/t, approximately INR 33,720/t (inclusive of freight). HMS (80:20) in Mumbai remained flat d-o-d at INR 33,050/t DAP. Indicative prices of shredded from Europe stood at $386/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 12,750/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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