- Mills restrict scrap purchases to immediate requirements
- Power cuts curb steel production, weighing on demand
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, moved down by INR 100/t d-o-d to INR 41,600/t DAP on 07 September 2026.
Mandi Gobindgarh, a key secondary steel hub, witnessed a softer trend today as major buyers remained absent amid cautious market sentiment. Scrap demand was equally weak, with mills restricting procurement to need‑based quantities over the past few days. This caution stems from elevated scrap arrivals from neighbouring states and sluggish finished steel offtake. Compounding the pressure, recurring power cuts have forced both small and large steelmakers to curtail production, further dampening raw material appetite and reinforcing the subdued tone in the local market.
Alternative raw materials
Sponge iron (CDRI) prices in Mandi Gobindgarh inched up by INR 100/t d-o-d to INR 33,300/t DAP, marking a modest firming after recent volatility.
In contrast, steel-grade pig iron in Ludhiana held steady at INR 42,700/t DAP, unchanged for the past week, indicating stable cost support from this segment despite mixed signals in the broader secondary steel complex.
Steel market
In Mandi Gobindgarh, ingot prices remained flat d-o-d at INR 46,400/t DAP, reflecting a cautious equilibrium between raw material costs and tepid downstream demand.
Regionally, however, the picture was mixed: western hubs saw ingot values advance by INR 100-350/t, supported by relatively better buying interest, while northern markets weakened by INR 350-400/t as sentiment deteriorated and mills faced pressure from slower offtake and higher inventory levels.
In the long-products segment, Mandi Gobindgarh rebar (Fe 500) prices softened by INR 100/t to INR 51,400/t ex-works, as traders and fabricators maintained a defensive stance amid uncertain demand.
HR strip (patra) prices also declined by INR 200/t to INR 51,000/t ex-works, with market participants reporting slow and muted buying throughout the session. The combined weakness in rebar and strip underscores the current demand-side drag in the secondary long-steel market, even as input costs remain broadly supported.
Overview of Alang market
On 7 September 2026, HMS 80:20 ship-breaking melting scrap in Alang, Gujarat, gained INR 500/t to trade at INR 37,000/t ($392/t) ex-yard, lifted by constrained scrap supply and stronger pricing from primary mills.
However, transactional activity remained muted, with buyers resisting price hikes and adopting a cautious stance amid fears of excess inventory.
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 4,600-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $367/t-$368/t, approximately INR 37,100/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 $414/t-$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 13,650/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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