India: BigMint’s ferrous scrap index climbs up by INR 600/t d-o-d as steel prices strengthen

• Mills take advantage of improved scrap arrivals to replenish inventories
• Semis, finished steel prices move up by INR 300-600/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 600/tonne (t) d-o-d to INR 41,300/t DAP on 27 Aug 2026.

Mandi Gobindgarh’s ferrous scrap market recorded a broad-based price improvement of INR 600-800/t across grades on Thursday, tracking a parallel INR 300-600/t rise in semi‑finished and finished steel on a d-o-d basis. Demand remained moderate overall, but prices gained momentum in the first half of the session on fresh spot enquiries from buyers, before sentiment turned more cautious post‑lunch as participants adopted a wait‑and‑see stance.

A mill owner informed BigMint, “In Mandi, the scrap market saw improved arrivals as steel mills procured material in good volumes, while a marginal relaxation in GST checking encouraged buyers to lift stock in the current window. Inter‑state flows into the Mandi-Ludhiana belt also picked up, with better inbound movement from neighbouring states supporting yard inventories and reinforcing the recent price firmness across grades.”

Alternative raw material prices

The Mandi Gobindgarh sponge iron (C‑DRI) market extended its rally, with prices rising INR 700/t d-o-d to INR 32,700/t DAP, as local steelmakers sourced material in decent volumes directly from Durgapur and Ramgarh. By contrast, Ludhiana steel‑grade pig iron held steady at INR 42,500/t DAP, indicating a more balanced market with limited immediate buying pressure.

Steel market

In the steel segment, Mandi Gobindgarh ingot prices climbed INR 600/t d-o-d to INR 45,300/t DAP, supported by moderate demand in today’s trading session. Other key hubs also saw ingot values firm by INR 600-1,000/t, reflecting a broader upward trend. In finished steel, rebar ex‑works prices advanced INR 300/t to INR 49,900/t, underpinned by steady buying from local traders and end users.

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 $356/t, approximately INR 36,300/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai moved up by INR 350/t d-o-d to INR 34,800/t DAP. Indicative prices of shredded from Europe stood at $410/t-$412/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 12,700/t.

To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here

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