- Mills limit scrap procurement amid inventory pressure
- Ingot and patra prices dip INR 400-500/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, eased by INR 400/t d-o-d to INR 40,700/t DAP on 15 October 2026. Weak demand across the raw material-to-finished steel value chain weighed on market sentiment today.
Mandi Gobindgarh, a key secondary steel hub, remained largely quiet today, with no major trade activity observed in either trading session.
Scrap procurement stayed limited as finished steel demand remained sluggish, while some local mill owners continued to manage inventory pressure. Although scrap arrivals were healthy, mills preferred need-based and cautious buying rather than aggressive procurement.
Against this backdrop, scrap prices declined by INR 350-400/t d-o-d. The price correction reflects weak downstream demand, adequate material availability, and mills’ efforts to control inventory and procurement costs. The market is likely to remain cautious in the near term, with buying activity dependent on any improvement in finished steel offtake.
Alternative raw material
Sponge iron prices in Mandi Gobindgarh held steady d-o-d at INR 34,000/t DAP. In contrast, steel-grade pig iron prices in Ludhiana declined by INR 500/t to INR 43,500/t, reflecting subdued demand and cautious buying sentiment in the segment.
Steel market
Steel ingot prices in Mandi Gobindgarh dropped sharply by INR 400/t d-o-d to INR 46,600/t DAP, while semi-finished steel prices across other markets declined by INR 200-400/t. The broad-based correction reflects cautious market sentiment, weak downstream demand, and limited buyer participation.
Rebar (Fe500) prices held steady at INR 52,500/t ex-works, whereas HR strip (patra) prices fell significantly by INR 500/t to INR 50,500/t ex-works, indicating soft demand across key finished steel categories.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,800-6,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $368-$370/t, approximately INR 37,300/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 36,700/t DAP. Indicative prices of shredded from Europe stood at $410-$412/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 16,100/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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