- Sponge iron prices increase by INR 200/t d-o-d
- Semis, finished steel prices rise by INR 150-200/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 38,100/tonne (t) DAP on 11 August 2026. Scrap offers remained firm today, with only minor changes.
Overall scrap prices in Mandi Gobindgarh remained stable day on day, with no significant movement across major grades. The market was supported by supply tightness and regular, need-based procurement from local steel mills. At the same time, demand for semi-finished and finished steel improved compared with the previous trading session, providing some support to the broader market sentiment.
Despite the improvement in downstream demand, mills continued to adopt a cautious buying approach and remained focused on maintaining viable conversion margins. Market participants therefore expect prices to remain rangebound in the near term, with only limited fluctuations unless there is a noticeable change in scrap availability, mill buying activity, or finished-steel demand.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 200/t day on day to INR 29,500/t DAP, while steel-grade pig iron prices in Ludhiana declined by INR 200/t to INR 42,300/t DAP.
The divergent price movement reflects a shift in mill purchasing preference rather than a broad strengthening of alternative raw materials. With scrap availability remaining relatively tight, local steelmakers in Mandi Gobindgarh have increased their reliance on sponge iron to maintain furnace operations and manage charge-mix costs. Although sponge iron arrivals in the Mandi market have improved, the additional supply is being absorbed by regular mill procurement, limiting any immediate downward pressure on prices.
Steel market trends
Semi-finished steel prices showed a positive trend across major production centres, supported by improved buying interest and firmer mill offers. In Mandi Gobindgarh, ingot prices increased by INR 150/t day on day to INR 42,150/t DAP, while prices across other key production centres rose by INR 100-300/t.
In the finished-steel segment, Fe500 rebar prices in Mandi Gobindgarh advanced by INR 200/t to INR 46,900/t ex-works. HR strip (patra) prices also edged up by INR 100/t day on day to INR 47,000/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 33,850/t (inclusive of freight). HMS (80:20) in Mumbai increased by INR 200/t d-o-d to INR 33,000/t DAP supported by local demand. 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 13,050/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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