India: BigMint’s ferrous scrap index gains INR 200/t d-o-d, supported by higher steel prices

• Strict GST checks slow down inter-state scrap inflows
• Finished steel prices rise INR 300/t, semis hold firm

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 200/tonne (t) d-o-d to INR 38,500/t DAP on 13 August 2026, supported by higher steel prices.

Mandi Gobindgarh’s steel market remained positive today, with ferrous scrap prices rising INR 200/t d-o-d. Local secondary mills maintained decent buying interest, while stringent GST document checks at entry points slowed inter-state scrap inflows, tightening regional availability. Some larger mills are paying a premium to secure melting scrap, reinforcing the upward price bias.

Finished steel demand remained moderate, preventing a sharp pass-through but still allowing mills to absorb higher raw material costs in the near term. Sentiment in Mandi is cautiously constructive: persistent GST-led supply constraints and steady mill procurement create a floor under prices, though monsoon-related logistical frictions and only moderate end-user demand cap how far prices can run without stronger realisations.

Alternative raw material prices

In Mandi, the sponge iron (CDRI) market strengthened today, with prices up INR 150/t to INR 29,800/t DAP, driven by aggressive procurement from local steelmakers facing a domestic scrap shortage. Good arrivals from Durgapur have improved physical availability, yet demand from secondary mills-using sponge iron as a scrap substitute and to fill the gap left by slower imported scrap-has kept the price bias positive. In contrast, steel-grade pig iron in Ludhiana remained unchanged at INR 42,300/t DAP, signalling stable but less urgent demand.

Steel market

Semi-finished steel prices trended higher across major production centres, underpinned by improved buying interest and firmer mill offers. In Mandi Gobindgarh, ingot prices held steady d-o-d at INR 42,500/t DAP, while other key hubs recorded gains of INR 150-400/t, reflecting regionally stronger demand and tighter near-term availability.

In the long-products segment, Mandi’s rebar (Fe500) prices advanced INR 300/t to INR 47,300/t ex-works, supported by decent end-user inquiry. HR strip (patra) prices inched up by INR 100/t to INR 47,300/t ex-works.

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 3,800-4,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $332-$333/t, approximately INR 33,880/t (inclusive of freight). HMS (80:20) in Mumbai inched up by INR 50/t d-o-d to INR 33,050/t DAP. Indicative prices of shredded from Europe stood at $387/t-$388/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 12,950/t.

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

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