- Scrap arrivals rise as mills limit fresh purchases
- Steel prices rise but transaction volumes remain thin
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 43,300/t DAP on 16 Sept 2026.The overall steel market stayed moderate, while scrap buying was limited in today’s trading session.
In Mandi, increased arrivals of steel scrap from neighbouring regions, combined with slow buying by local steelmakers, have placed pressure on scrap suppliers. As most mills are already holding comfortable scrap inventories, suppliers have been compelled to reduce their offers to stimulate demand.
Meanwhile, uncertain market conditions and subdued demand for finished steel continue to weigh on sentiment. Although the majority of mills anticipate an increase in semi-finished steel prices, some market participants still expect prices to remain stable. This cautious outlook is limiting immediate buying interest and keeping local scrap demand under pressure.
A mill owner informed BigMint: “Over the past few days, ingot and Fe500 rebar prices have increased by around INR 1,100/t. However, substantial transaction volumes are still lacking, creating uncertainty in the market and raising doubts about the sustainability of the recent price rise.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh inched up by INR 100/t d-o-d to 34,500/t DAP, while steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 44,000/t DAP.
Steel market
Ingot prices at Mandi Gobindgarh rose by INR 300/t d-o-d to INR 48,400/t DAP on Wednesday, as moderate buying interest supported the market. Prices across other major hubs also increased by INR 100-400/t, pointing to a broad-based improvement in sentiment.
In the finished steel segment, rebar prices gained INR 300/t d-o-d to INR 53,500/t ex-works, supported by steady demand from buyers. HR strip (patra) prices also edged up by INR 100/t to INR 52,900/t ex-works. Despite the price increases, market participants continued to monitor the strength of underlying demand and transaction volumes.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,800-5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $373/t, approximately INR 38,100/t (inclusive of freight). HMS(80:20) prices in Mumbai increased by INR 100/t d-o-d to INR 36,600/t DAP. Indicative prices of shredded from Europe stood at $414/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 15,050/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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