- Need-based scrap buying pushes sellers to reduce offers
- Semis, finished steel prices decline by INR 200-400/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 500/tonne (t) d-o-d to INR 38,500/t DAP on 27 January 2026. Scrap prices declined by INR 500-1,000/t across regions.
Mandi Gobindgarh, a key secondary steel hub, saw scrap prices decline by INR 500-1,000/t last week. The primary trigger was a surplus influx of scrap from neighbouring states, coupled with sluggish demand for finished steel. Mills adopted a need-based procurement strategy, further pressuring local suppliers. As a result, suppliers reduced their offers to sustain trading volumes.
A mill owner informed BigMint, “The secondary steel market has witnessed a recent price drop amid uncertain demand and cautious buyer sentiment on bulk deals. However, positive signals from primary mills’ finished steel price hikes are filtering through, fostering optimism for a swift recovery.”
Alternative raw material prices
In the raw material segment, sponge iron (CDRI) prices in Mandi Gobindgarh declined by INR 200/t d-o-d to INR 30,500/t DAP, while steel-grade pig iron prices in Ludhiana jumped INR 450/t d-o-d to INR 40,350/t DAP.
Steel market trend
In Mandi Gobindgarh, semi-finished steel prices declined by INR 400/t d-o-d to INR 44,400/t DAP during the reporting and normalisation period. Across major steel hubs, prices fell INR 200-600/t d-o-d.
In the rebar (Fe500) segment, Mandi Gobindgarh prices inched down by INR 200/t d-o-d to INR 49,200/t ex-works.
HR strip (patra) prices fell by INR 400/t d-o-d to INR 44,800/t ex-works amid sales pressure.
Overview of Alang scrap market
Alang’s ship-breaking melting scrap market saw no change d-o-d on 27 January 2026, per BigMint’s assessment: HMS (80:20) remained at INR 33,200/t ex-yard. Stable prices of semi-finished and finished steel in the previous session, plus moderate scrap procurement volumes, led suppliers to hold offers firm today.
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 5,400-5,800/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $335/t, approximately INR 33,000/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $362/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 15,450/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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