- GST inspections tighten domestic scrap availability
- Sponge to finished steel prices increase by INR 150-300/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/tonne (t) d-o-d to INR 38,300/t DAP on 12 August 2026.
A mill owner informed: “Persistent scrap shortages and intensified GST checks continued to weigh on Mandi’s steel market, keeping physical availability tight and supporting scrap prices through the day. Firm raw-material costs fed through to semi-finished and finished steel, which gained around INR 200-300/t on a day-on-day basis. Spot buying activity and improved enquiries signalled broader demand support, suggesting the uptrend is backed by genuine interest rather than purely cost-push dynamics. While near-term sentiment remains firm, sustained momentum will hinge on whether scrap inflows normalise and end-user demand holds at these higher price levels amid ongoing regulatory scrutiny and supply-side constraints.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 150/t day on day to INR 29,650/t DAP, while steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 42,300/t DAP.
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 300/t d-o-d to INR 42,400/t DAP, while prices across other key production centres rose by INR 50-400/t.
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 remained stable d-o-d at INR 33,000/t DAP. 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 13,000/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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