- Lohri, price uncertainty slow down steel trade this week
- Primary mills’ price hikes fail to sustain positive sentiment
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, inched up by INR 100/tonne (t) d-o-d to INR 37,900/t DAP on 16 January 2026. However, the index remained flat w-o-w amid moderate scrap buying. Additionally, prices of some scrap grades rose by INR 135-230/t w-o-w, tracking recent price hikes in semi-finished steel, while domestic scrap arrivals remained healthy across the market.
Mandi Gobindgarh, a key secondary steel hub, witnessed moderate market activity during the week as trading was partially disrupted by the Lohri festival. Sentiment improved briefly after select primary mills announced price hikes in finished steel, prompting a few sudden upward revisions in the secondary market. However, the optimism proved short-lived, with buyers turning cautious over the past two days amid uncertainty over further price increases. Overall, steel demand in the region remained at a moderate level, reflecting a wait-and-watch approach among buyers.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 29,700/t (DAP). Prices also remained stable on a w-o-w basis in the region.
However, steel-grade pig iron prices in Ludhiana rose by INR 200/t d-o-d to INR 40,200/t (DAP), while recording a w-o-w increase of INR 1,040/t.
Steel market dynamics
In the semi-finished steel segment, ingot prices in Mandi Gobindgarh remained steady d-o-d at INR 42,500/t DAP, while prices across other major production hubs strengthened by INR 100-1,000/t over the same period. On a w-o-w basis, ingot prices in Mandi rose by INR 280/t.
Rebar (Fe 500) prices in Mandi Gobindgarh remained stable d-o-d at INR 48,100/t. On a w-o-w basis, prices increased by INR 280/t.
Overview of Alang scrap market
In Gujarat’s Alang, ship-breaking melting scrap prices increased by INR 1,000/t d-o-d on 16 January 2026. HMS (80:20) was assessed at INR 32,800/t ex-yard. Active regional steel trade, along with hikes of INR 1,400-1,600/t for semi-finished and finished steel, lifted scrap levels. Strong demand and a slight supply shortage also spurred higher supplier offers.
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 $326/t, approximately INR 31,892/t (inclusive of freight). HMS(80:20) scrap prices in Mumbai rose by INR 200/t d-o-d to INR 32,200/t DAP. Indicative prices of shredded from Europe stood at $353/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 16,200/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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