- Weekly pressure persists on weak mill buying
- Year-end factors and gas crisis weigh on sentiment
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 200/tonne (t) d-o-d to INR 37,700/t DAP on 27 March 2026. The scrap index fell by INR 100/t to INR 220/t this week, driven by weak mill buying and sluggish steel demand. However, today’s trading session saw average demand for semi-finished and finished steel which lifted scrap prices amid an uncertain market outlook.
The gas crisis prompted Mandi Gobindgarh mills to suspend oversized steel scrap procurement, except for minimal needs-driven buys. With FY (March) year-end looming, traders and mills prioritised balance sheet and inventory protection over new deals-driving down trade volumes and exerting downward pressure on prices.
A mill owner informed: “With imported scrap arrivals lagging and Indian buyers sharply curtailing purchases, domestic scrap demand is surging as import-reliant mills pivot aggressively to local sources-fuelling fierce competition in an already constrained market. The big players are poised to dominate supply chains, securing premium allocations with favourable credit terms, while the smaller and medium-sized mills face heightened challenges amid squeezed availability and tougher pricing that favours the majors over low rates or extended terms.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved up by INR 100/t d-o-d to INR 32,500/t (DAP). W-o-w, prices remained stable.
Steel-grade pig iron prices in Ludhiana increased d-o-d by INR 150/t to INR 39,800/t (DAP), while on a weekly basis, prices remained firm.
Steel market dynamics
In the semi-finished steel segment, ingot prices in Mandi Gobindgarh surged by INR 300/t d-o-d to INR 44,000/t DAP, while prices across major production hubs strengthened by INR 100-900/t over the same period. On a w-o-w basis, ingot prices in Mandi fell by INR 270/t.
Rebar (Fe 500) prices in Mandi Gobindgarh rose by INR 200/t d-o-d at INR 49,500/t. On a w-o-w basis, prices remained stable. Similarly HR strip (patra) prices improved by INR 400/t to INR 45,900/t today. Prices dipped by INR 380/t w-o-w.
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 5,900-6,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $368-$370/t, approximately INR 37,402/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d to INR 34,500/t DAP. Indicative prices of shredded from Europe stood at $390-$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 15,150/t.
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To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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