- Sponge to finished steel prices increase by INR 300-500/t
- Steel demand improves in Mandi steel market
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 400/tonne (t) d-o-d to INR 39,200/t DAP on 19 August 2026, driven by robust scrap demand and an uptrend in steel prices.
Mandi Gobindgarh, a key secondary steel hub, turned positive on Wednesday as raw-to-finished steel prices advanced by INR 400-500/t d-o-d amid decent demand for finished steel and healthy scrap buying in the region. Market sentiment improved from earlier caution, with traders reporting better enquiry levels and firmer price realisation across billets and long products. Healthy procurement of scrap & sponge continued to underpin mill costs, while selective buying from buyers supported offer clearance at higher levels, keeping the near-term outlook stable-to-firm.
Alternative raw material prices
Sponge iron (C‑DRI) prices in Mandi Gobindgarh posted a day-on-day gain of INR 500/t, reaching INR 30,800/t DAP, as local mills stepped up purchases against a backdrop of tight domestic scrap. Better arrivals from Durgapur have supported physical supply, yet secondary steelmakers’ preference for sponge iron as a scrap substitute and hedge against weak imported scrap has maintained upward price pressure. In comparison, Ludhiana’s steel‑grade pig iron held at INR 42,500/t DAP, reflecting balanced but less urgent demand.
Steel market
Semi-finished steel prices strengthened as mills enforced tighter offers and buyers stepped up procurement. Mandi Gobindgarh ingot prices rose INR 300/t day-on-day to INR 42,500/t DAP, while other major hubs saw increases of INR 250–700/t, indicating robust regional demand and constrained supply. In finished longs, Mandi’s Fe500 rebar gained INR 300/t to INR 47,900/t ex-works on decent end-user inquiry, and HR strip (patra) moved up INR 500/t to INR 48,200/t ex-works, highlighting firmer momentum in the secondary long-steel market.
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/t, approximately INR 34,300/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai moved up by INR 150/t to INR 33,750/t DAP. Indicative prices of shredded from Europe stood at $395/t-$396/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 12,700/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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