India: BigMint’s ferrous scrap index drops by INR 400/t d-o-d as steel demand stays muted

• Sponge iron prices inches up by INR 100/t today
• Semis, finished steel prices soften by INR 200-400/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 500/tonne (t) d-o-d to INR 38,400/t DAP on 20 January 2026.

Steel demand in Mandi Gobindgarh remained subdued across both trading sessions today, as buyers stayed cautious amid expectations of a further correction in finished steel prices. In response, scrap sellers lowered their offers day-on-day, pressured by good arrivals of domestic scrap from neighbouring states. Secondary steelmakers continued to prefer local scrap due to better price viability and availability, while overall market sentiment remained uncertain.

Raw material

Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t d-o-d at INR 30,600/t DAP, while steel-grade pig iron prices in Ludhiana slipped by INR 500/t d-o-d to INR 39,800/t DAP.

Steel market

Semi-finished steel (ingot) prices in Mandi Gobindgarh declined by INR 400/t d-o-d, settling at INR 43,900/t DAP. Other major production hubs also witnessed price drops in the range of INR 200-900/t today’s trading session.

Rebar (Fe500) prices in Mandi Gobindgarh moved down by INR 200/t d-o-d to 48,800/t ex-works. Meanwhile, HR strip (patra) prices softened by INR 500/t to INR 44,300/t ex-works.

Demand for patra and tmt has weakened over the last two trading sessions in Mandi, as buyers anticipate further price corrections in finished steel in the near term, a mill owner informed BigMint.

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 5,200-5,700/t

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 32,319/t (inclusive of freight). HMS(80:20) scrap prices in Mumbai moved down by INR 100/t to INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $360/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 15,850/t.

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

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