- Healthy scrap arrivals, bid-offer gaps limit price gains
- Semi-finished steel prices increase by INR 200/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 100/tonne (t) d-o-d to INR 43,300/t DAP on 15 September 2026. Mandi Gobindgarh’s secondary steel market showed a marginal improvement on Tuesday, with steel scrap prices inching up.
The movement was supported by a modest recovery in finished steel demand and improved buying activity from local steelmakers. Market participants also reported a rise of around INR 200/t in steel ingot prices d-o-d, providing some near-term support to the overall market sentiment.
Despite the firmer tone, the scrap market remains well supplied. Scrap arrivals continue to exceed immediate consumption requirements, increasing material availability and placing pressure on suppliers’ margins. Sellers are therefore facing difficulty in passing on higher replacement costs, particularly as mills remain selective and continue to purchase only against immediate requirements.
A noticeable bid-offer disparity is also restricting trading activity. Buyers are maintaining a cautious approach and seeking lower purchase levels, while sellers are reluctant to make significant concessions.
Imported scrap is currently finding limited acceptance among Mandi-based steelmakers. Mills are unwilling to commit at prevailing offer levels and are instead seeking more competitive prices, particularly from African origins.
A mill owner informed BigMint, “The outlook for the Mandi’s secondary steel market remains cautiously positive. Improved finished steel demand, firmer ingot prices and expectations of a favourable movement in semi-finished and finished steel prices may provide further support in the coming days.” However, he noted that sustained price gains could remain challenging unless finished steel sales improve significantly and excess scrap arrivals moderate.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 200/t d-o-d to 34,400/t DAP, while steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 44,000/t DAP.
Steel market
In the steel segment, Mandi Gobindgarh ingot prices climbed INR 200/t d-o-d to INR 48,100/t DAP, supported by moderate demand in today’s trading session. Other key hubs also saw ingot values firm by INR 200-700/t, reflecting a broader upward trend. In finished steel, rebar ex‑works prices remained stable d-o-d at INR 53,200/t, underpinned by steady buying from local traders and end users. Similarly HR strip (patra) prices rose by INR 100/t d-o-d to INR 52,900/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 $375/t, approximately INR 38,230/t (inclusive of freight). HMS(80:20) prices in Mumbai rose significantly by INR 900/t d-o-d to INR 36,500/t DAP, supported by strong steel demand and a sudden uptrend in semi-finished and finished steel prices across the region. 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 14,950/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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