- Semis,finihsed prices improves INR 1,300-1,550/t
- Imported scrap gains interest as mills seek cost advantage
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/t d-o-d to INR 41,800/t DAP on 04 Sept 2026. The scrap index rose by INR 1,100/t w-o-w amid moderate steel market sentiments.
Scrap buying activity in Mandi Gobindgarh has remained moderate over the past week. Arrivals have been steady to good, but demand from the finished-steel segment continues to stay limited.
After a series of sharp price hikes in finished steel over the last couple of weeks, buyers have adopted a cautious stance. Many are holding back on aggressive purchases, awaiting clearer signals on price sustainability before committing to fresh inventory.
At the same time, interest in imported scrap is slowly picking up in Mandi. Several large mills are showing renewed appetite to book cargoes, particularly from the South African region, where offer levels are perceived as more attractive compared to domestic HMS grades.
A mill owner informed BigMint:”With local HMS scrap trading at relatively elevated levels, imported material is gaining attention as a cost-effective alternative for charge-mix optimization. This shift could gradually ease pressure on domestic scrap realizations if booking momentum builds in the coming weeks.”
Raw-material, steel market trends
Sponge iron prices in Mandi eased by INR 200/t d-o-d to INR 33,300/t DAP, as short-term trading activity softened. However, the weekly trend remains firmly positive, with prices up INR 1,150/t, supported by improved buying interest and steadier market sentiment.
In Ludhiana, pig iron prices held steady d-o-d at INR 42,700/t DAP. On a weekly basis, values edged higher by INR 150/t, reflecting a moderate but constructive price trajectory amid balanced supply-demand conditions.
In the finished-steel market, Mandi ingot prices dipped INR 150/t d-o-d to INR 46,350/t, though the weekly gain stands at a healthy INR 1,270/t. Rebar ex-works prices remained unchanged day-on-day at INR 51,500/t, extending the weekly increase to INR 1,540/t.
The sustained upward movement across key steel products continues to draw support from firmer raw-material costs and steady, if selective, buying activity.
A mill owner told BigMint: “HR strip (patra) demand has been moderate to high this week, with the pipes segment showing firmness. On a weekly basis, HR strip prices in Mandi have increased by around INR 1,100/t.”
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,100-4,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $365/t, approximately INR 36,773/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 35,250/t DAP. Indicative prices of shredded from Europe stood at $415/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 12,900/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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