- Buyers stay on sidelines after sharp price rally in previous week
- Steelmakers reduce scrap bids amid healthy material inflows
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, eased by INR 100/t d-o-d to INR 43,200/t DAP on 14 September 2026.
Mandi Gobindgarh, India’s key secondary steel hub, saw softer market sentiment. Market participants adopted a wait-and-watch stance after prices in the secondary steel value chain — sponge iron, ingot, and scrap — jumped sharply over the past few days, leading to profit-booking and delayed fresh procurement.
End-user offtake for long products also remained muted, pressuring steelmakers to reduce offers to clear inventory and sustain turnover in a thin market. Meanwhile, scrap inflows into Mandi stayed robust as large mills continued decent procurement, but better availability allowed mills to reduce scrap bids.
A mill owner informed BigMint, “A pickup in finished steel offtake will be the key trigger for whether mills stabilise scrap prices or extend cuts; if scrap arrivals remain strong while mills defend margins, scrap bids are likely to stay range-bound despite steady procurement; and movements in raw-material costs, particularly coal and sponge iron, will set the floor for how far mills can trim offers without squeezing profitability.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh fell by INR 300/t d-o-d to INR 34,200/t DAP, reflecting softer buying interest after recent gains. In contrast, steel-grade pig iron prices in Ludhiana surged by INR 1,000/t to INR 44,000/t ex-works, driven by tighter availability as sellers lifted offers following last week’s downtrend.
Steel market
Mandi Gobindgarh’s semi-finished steel market remained soft today, with ingot prices decreasing by INR 100/t d-o-d to INR 47,900/t DAP. In contrast, other major production centres reported declines of around INR 100-500/t d-o-d.
In the finished-steel segment, rebar (Fe500) prices in Mandi Gobindgarh held steady d-o-d at INR 53,200/t ex-works, while HR strip (patra) prices dipped by INR 100/t d-o-d to INR 52,800/t ex-works.
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 4,500-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $373/t, approximately INR 38,050/t (inclusive of freight). Indicative prices of shredded from Europe stood at $415/t CFR Nhava Sheva.
The Mumbai secondary steel market remained shut today on account of Ganesh Chaturthi, with overall trading activity remaining inactive during the session.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 14,000/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
Leave a Reply