India: BigMint’s ferrous scrap index slips by INR 300/t amid weak steel demand

• GST checks disrupt trading, tighten market liquidity
• Semis, finished steel prices drop by INR 100-800/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 300/tonne (t) d-o-d to INR 42,100/t DAP on 21 September 2026.

Mandi Gobindgarh, a key price benchmark for India’s secondary steel market, has witnessed a cautious buying trend over the past several sessions, with finished steel and raw material prices under sustained pressure.

Local traders and processors report that scrap prices have corrected by around INR 1,200-1,400/t in recent days, eroding margins for many sellers. Despite steady scrap arrivals, demand for finished steel has remained sluggish, forcing several operators to adopt a “no profit-no loss” stance to maintain cash flow and inventory turnover.

In parallel, intensified GST verification and compliance checks in the Mandi region have further constrained trading activity. Market participants note that these inspections have disrupted normal working conditions, delayed material movement, and tightened liquidity, adding to the already soft sentiment.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh eased by INR 100/t d-o-d to INR 34,000/t DAP, reflecting subdued demand and cautious mill procurement. Meanwhile, steel-grade pig iron prices in Ludhiana slipped by INR 800/t d-o-d to INR 43,800/t DAP, indicating subdued steel market conditions in Ludhiana.

Steel market

Semi-finished steel prices in Mandi Gobindgarh decreased by INR 300/t d-o-d to INR 47,500/t DAP. Prices across other major steel-producing centres also declined by approximately INR 100-700/t, highlighting broad-based weakness in the secondary steel market.

In the finished-steel segment, Fe500 rebar prices in Mandi Gobindgarh dropped by INR 100/t to INR 53,000/t ex-works. HR strip, or patra, prices also declined by INR 800/t to INR 51,800/t ex-works, extending the ongoing downtrend. Overall, weak downstream demand, limited mill procurement and pressure on selling prices continued to weigh on market sentiment

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,200-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $372-$374/t, approximately INR 38,000/t (inclusive of freight). HMS (80:20) prices in Mumbai dipped by INR 200/t to INR 36,600/t DAP. Indicative prices of shredded from Europe stood at $414-$415/t CFR Nhava Sheva. A giant steel maker booked around 4,000 t HMS(90:10) scrap at INR 37,500-37,700/t DAP Mumbai.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 15,850/t.

To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here

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