- Price hikes by primary mills support secondary market
- Semis, finished steel prices jump by INR 400-700/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 600/tonne (t) d-o-d to a four-month high of INR 40,500/t DAP on 24 August 2026, driven by robust scrap demand and an uptrend in steel prices.
Steel prices in Mandi Gobindgarh have continued to climb as scrap prices reached a four-month peak, their highest level since 13 April 2026. The strength of the uptrend is further reflected in steel ingot prices reaching a six-month high, while scrap prices have also climbed to a four-month high. The simultaneous firming of both scrap and ingot prices highlights the broad-based strength in the market, with elevated input costs and tightening scrap availability continuing to provide a strong foundation for the prevailing positive price sentiment.
Steel prices across the raw-to-finished steel chain advanced by around INR 500-700/t d-o-d, extending the positive momentum that has been building since last week.
A mill owner informed BigMint, “The continued tightness in scrap availability, coupled with firming raw-material costs, remains a key factor supporting the current price structure. At the same time, the latest upward revisions by primary steel mills in finished steel have provided additional strength to the secondary market, improving replacement-cost economics and reinforcing bullish market sentiment.”
Another steel maker of Mandi stated, “The price movement is therefore not merely a result of spot-market buying; it reflects a broader strengthening of the cost and supply equation. With raw materials remaining relatively tight and finished steel prices moving higher, secondary producers are finding greater support to maintain elevated offers, while buyers are increasingly adjusting to the higher replacement-cost environment.”
From a market-sentiment perspective, Mandi Gobindgarh continues to signal a positive bias, with participants largely maintaining a firm stance rather than aggressively discounting material. The sustained rise over the past week, followed by today’s further increase, indicates that the market is currently operating in a bullish price-discovery phase.
Alternative raw material prices
The Mandi Gobindgarh sponge iron (C-DRI) market strengthened further, with prices rising INR 500/t d-o-d to INR 32,000/t DAP. The move highlights continued firmness in the alternative metallics segment, where tight domestic scrap availability is encouraging mills to increase sponge iron procurement. While improved arrivals from Durgapur have provided some relief on the supply side, demand-side support remains strong as secondary steelmakers increasingly view sponge iron as a viable substitute for scarce domestic scrap and a hedge against volatility in imported scrap. This combination continues to support elevated price levels. By contrast, Ludhiana steel-grade pig iron was unchanged at INR 42,500/t DAP, suggesting a comparatively balanced market with limited immediate buying pressure.
Steel market
Semi-finished steel prices firmed as mills tightened offers and buyers accelerated purchases. Mandi Gobindgarh ingot climbed INR 700/t d-o-d to INR 44,700/t DAP, with other key hubs up INR 300-650/t, underscoring tight supply and solid regional demand. In finished longs, Mandi’s Fe500 rebar advanced INR 400/t to INR 49,300/t ex-works on steady end-user inquiry, while HR strip (patra) jumped INR 1,000/t to INR 50,000/t ex-works, reflecting firmer momentum in the secondary long-steel segment.
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 3,900-4,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $345-$346/t, approximately INR 35,420/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai moved up by INR 400/t d-o-d to INR 34,400/t DAP. Indicative prices of shredded from Europe stood at $402/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 12,450/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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