India: BigMint’s ferrous scrap index drops slightly as steel demand softens

• Sponge iron prices dip by INR 100/t d-o-d
• Semis, finished steel prices down INR 100-200/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 37,500/t DAP on 7 January 2026.

The steel market remained largely inactive throughout the day as buyers continued to adopt a wait-and-watch approach. Finished steel demand stayed weak, while persistent pressure on conversion margins kept market sentiment subdued. With limited inquiries from semi-finished and finished steel segments, scrap suppliers also lowered their offers today to align with the slow market trend.

Alternative raw material 

The sponge iron (CDRI) market in Mandi Gobindgarh fell by INR 100/t to INR 29,500/t DAP. Likewise, steel-grade pig iron in Ludhiana moved down by INR 250/t d-o-d to INR 38,400/t DAP.

Steel market

Semi-finished steel (ingot) prices in Mandi Gobindgarh fell by INR 150/t d-o-d to INR 40,600/t DAP. Similarly, ingot prices across major production hubs registered a drop of INR 100-500/t in today’s trading.

Meanwhile, rebar (Fe500) prices in Mandi decreased by INR 200/t d-o-d to INR 47,300/t ex-works on rising input costs, though demand was subdued. HR strip (patra) prices dipped by INR 200/t to INR 43,800/t ex-works.

Overview of Alang market

In Gujarat’s Alang region, ship-breaking melting scrap prices moved down by INR 200/t on 7 January, according to BigMint’s assessment. HMS (80:20) was assessed at INR 32,500/t ex-yard. A downturn in the semi-finished and finished steel segments, alongside subdued buying sentiment, encouraged suppliers to revise offers lower today.

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 5,000-5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $326-329/t, approximately INR 31,635/t (inclusive of freight). HMS (80:20) in Mumbai remained steady d-o-d at INR 31,700/t DAP. Indicative prices of shredded from Europe stood at $355/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 15,900/t.

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

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