- Scrap inflows tighten amid GST inspections
- Semis, finished steel prices rise by INR 800/t w-o-w
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed by INR 700/tonne (t) d-o-d to INR 39,800/t DAP on 21 August 2026.
The scrap index also rose by INR 800/t w-o-w as ongoing GST inspections have affected scrap inflows into Mandi, with multiple trucks reportedly intercepted and seized in the Mandi Gobindgarh-Ludhiana belt, according to a local market source. In response, sellers have been prioritising neighbouring markets, resulting in tighter availability and stronger scrap prices in Mandi. The upward movement has also been reinforced by higher sponge iron prices.
According to a Mandi-based source, overall market sentiment in Mandi is currently bullish, supported by firmer raw material costs. Scrap to ingot prices have increased by around INR 1,500/t over the past few days, with local mills anticipating further gains. However, buying interest remains moderate to moderately positive
A mill owner informed BigMint, “Local Mandi rerollers are also closely watching Durgapur billet prices. If Mandi prices rise significantly above Durgapur levels, cheaper Durgapur billets could start flowing into the region, posing a competitive threat to local furnace operators.”
Today’s session saw a noticeable increase in inquiries for HR strip (patra), along with improved rebar prices. Looking ahead, mills are also turning their attention to imported scrap, which has become more viable as domestic scrap prices continue to rise rapidly amid an ongoing supply shortage.
Raw-material, steel market trends
Sponge iron prices in Mandi continued their upward trajectory, rising by INR 600/t d-o-d to INR 31,500/t DAP. W-o-w, prices increased by INR 1,070/t, supported by improved buying activity and firmer market conditions.
Pig iron prices in Ludhiana remained stable on a day-on-day basis at INR 42,500/t DAP. However, prices edged up by INR 120/t w-o-w, reflecting a marginal improvement in market sentiment.
In the steel segment, ingot prices in Mandi climbed by INR 800/t d-o-d to INR 44,000/t, while registering a w-o-w increase of INR 850/t. Rebar ex-works prices also advanced by INR 700/t to INR 48,700/t, taking the w-o-w rise to INR 880/t. The sustained increase across key steel products was supported by firmer raw material costs and improved buying conditions.
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 3,800-4,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $335-$338/t, approximately INR 34,550/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai inched up by INR 100/t d-o-d at INR 33,800/t DAP. Indicative prices of shredded from Europe stood at $395/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 12,400/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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