- Sponge iron prices dips by INR 200/t d-o-d
- Weak finished steel demand weighs on market
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) d-o-d to INR 38,300/t DAP on 1 July 2026.Weak end-user demand kept pressure on Mandi Gobindgarh today, triggering sharp price corrections across scrap and finished steel. Market participants reported cuts of INR 100-200 per tonne as buying interest remained thin.
Traders said the decline affected both scrap and finished grades, with secondary steel makers trimming offers to clear stocks amid subdued orders from downstream sectors. Despite the drop in scrap availability and prices, local steelmakers increased their usage of sponge iron to sustain production, citing the continued absence of imported scrap purchases in the region.
Raw materials
Sponge iron (CDRI) prices in Mandi declined by INR 200/t d-o-d to INR 29,600/t DAP. Steel-grade pig iron prices in Ludhiana also softened by INR 150/t d-o-d to INR 40,850/t DAP.
Steel market trends
Semi-finished steel prices reflected a softer trend across regions. Ingot prices in Mandi Gobindgarh eased by INR 200/t d-o-d to INR 42,900/t DAP, while other major production centres reported declines of INR 100-500/t. Rebar (Fe500) prices in Mandi Gobindgarh fell by INR 100/t to INR 47,700/t ex-works, while HR strip (patra) prices dropped by INR 400/t to INR 46,600/t ex-works.
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 4,400-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $336/t, approximately INR 34,250/t (inclusive of freight). HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 32,150/t DAP. Indicative prices of shredded from Europe stood at $388-$390/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 14,950/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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