India: BigMint’s ferrous scrap index drops INR 400/t as weak steel demand weighs

• Sponge iron prices decrease INR 400/t d-o-d
• Semis, finished steel prices dip INR 200-500/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 400/tonne (t) d-o-d to INR 42,800/t DAP on 8 October 2026. The correction came as weak finished steel realisations, particularly for rebar and structural steel, pressured secondary mills’ margins and reduced their willingness to procure scrap aggressively.

Inbound scrap availability remained adequate relative to consumption, adding further pressure on prices. Softer finished steel prices, cautious mill procurement and improved availability have tilted the scrap market towards buyers.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh dipped by INR 400/t d-o-d to INR 34,800/t DAP, reflecting subdued demand and cautious mill procurement.

Steel-grade pig iron prices in Ludhiana, however, increased by INR 100/t d-o-d to INR 42,700/t DAP, indicating relatively balanced conditions in the segment.

Steel market

Semi-finished steel prices in Mandi Gobindgarh fell by INR 300/t d-o-d to INR 48,200/t DAP. Prices across other major steel-producing centres decreased by around INR 200-700/t, indicating broad-based weakness across the secondary steel market.

Ghaziabad and Muzaffarnagar recorded the sharpest declines, with ingot prices falling by INR 700/t d-o-d.

In finished steel, Fe500 rebar prices in Mandi Gobindgarh moved down by INR 200/t to INR 53,500/t ex-works, while HR strip (patra) prices fell by INR 500/t to INR 52,500/t ex-works.

The decline across semi-finished and finished steel is weighing on secondary steelmakers’ margins and limiting their ability to absorb higher scrap costs.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,300-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $372/t, approximately INR 38,300/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 37,000/t DAP. Indicative prices of shredded from Europe stood at $415/t CFR Nhava Sheva. A giant steel maker booked around 4,300 t HMS (90:10) scrap at INR 38,000/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 16,550/t.

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

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