- Demand for domestic scrap robust as imports remain unviable
- Semis, finished steel prices increase by INR 1,900/t w-o-w
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 1,000/t d-o-d to INR 42,300/t DAP on 29 August 2026. The scrap index also rose by INR 1,900/t w-o-w amid positive market sentiments.
The Mandi Gobindgarh secondary steel market maintained a firm tone today, with prices across both raw-material and finished-steel segments advancing by around INR 1,100-7,000/t d-o-d. Scrap arrivals in the Mandi region showed a modest improvement, while major mills continued to procure at premium levels. This indicated sustained competition for suitable grades and reflected buyers’ willingness to secure raw material despite cautious-to-moderate demand in finished steel.
Demand for steel scrap remains robust, with mills paying premium prices as imported scrap has traded at elevated levels for an extended period. The INR 1,000-1,500/t premium on imported material has rendered it unviable for many local mills, prompting them to rely more heavily on domestic alternatives. Sponge iron, in particular, is bridging this gap, with mills actively sourcing material from Durgapur, Ramgarh and Odisha to meet charge-mix requirements.
Recent reports of power cuts in the region have bolstered market sentiment, providing short-term support to the upward price trend. However, local mills are now looking ahead to an expected primary steel price hike in early September, which they anticipate will further reinforce sentiment and underpin secondary steel prices in Mandi Gobindgarh.
A mill owner informed BigMint:”Demand for patra in Mandi remained strong, driven primarily by the pipes segment. Local traders and end users continued to place enquiries, supporting firmer prices. Today, patra prices rose by INR 1,000/t to INR 50,000/t, while on a weekly basis, prices advanced by INR 1,750/t.”
Raw-material, steel market trends
Sponge iron prices in Mandi continued their upward trajectory, rising by INR 1,100/t d-o-d to INR 33,500/t DAP. W-o-w, prices increased by INR 1,450/t, supported by improved buying activity and firmer market conditions.
Pig iron prices in Ludhiana climbed by INR 500/t d-o-d to INR 43,000/t DAP. However, prices edged up by INR 100/t w-o-w, reflecting a moderate price trend. Tight supply and robust demand in Ludhiana pushed pig iron prices up by around INR 500/t d-o-d. An improvement in finished-steel demand further underpinned the price increase. Additionally, shortages in alternative raw materials have strengthened the pig iron market, as mills seek reliable charge materials to bridge the gap.
In the steel segment, ingot prices in Mandi climbed by INR 1,000/t d-o-d to INR 46,300/t, while registering a w-o-w increase of INR 1,850/t. Rebar ex-works prices also advanced by INR 1,700/t to INR 51,600/t, taking the w-o-w rise to INR 1,900/t. The sustained increase across key steel products was supported by firmer raw material costs and improved buying conditions.
Overview of Alang market
Alang HMS 80:20 melting scrap prices rose sharply by INR 1,000/t d-o-d to INR 36,500/t ex-yard on 29 August, taking the w-o-w gain to INR 1,200/t. The market remained open during the festival, with strong buying sentiment supporting fresh trades. Limited vessel inflows kept scrap availability tight, while higher replacement costs and firm billet and rebar prices strengthened seller confidence and supported further price gains.
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 $355-$356/t, approximately INR 35,590/t (inclusive of freight as on 27 Aug). Today, HMS (80:20) prices in Mumbai moved up by INR 750/t d-o-d to INR 35,550/t DAP. Indicative prices of shredded from Europe stood at $408/t-$410/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 12,800/t.
To see BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here
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