- Scrap arrivals rise as GST checks ease
- Weak mill margins keeps buyers cautious
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 300/tonne (t) d-o-d to INR 42,200/t DAP on 02 Sept 2026.
Mandi Gobindgarh, a key secondary steel cluster, saw scrap prices ease by INR 300-600/t today as arrivals surged from neighbouring states and local suppliers rushed material into the market following recent GST-related relaxations in the region. Additionally, weak steel demand has kept scrap buyers cautious in the current market conditions.
After a prolonged phase of strict GST checking from early August, which had diverted scrap flows away from Mandi and Ludhiana and created shortages through August, the easing of compliance pressure has unlocked pent-up supply. Suppliers who had been holding or rerouting consignments are now boosting dispatches into Mandi, leading to a sharp rise in yard arrivals and a buyer’s market for HMS and other scrap grades.
A mill owner informed BigMint, “On the demand side, finished-steel sentiment has remained weak over the past several days, with soft rebar and structural steel realisations pressuring secondary mills’ margins. In this setup, mills are not chasing scrap, but rather letting offers soften as inbound volumes outpace consumption. The net result is a clean, fundamentals-driven correction: logistics and compliance normalising, scrap availability improving, and end-demand still cautious.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh declined by INR 200/t d-o-d to INR 33,300/t DAP, reflecting subdued demand and cautious mill procurement. Meanwhile, steel-grade pig iron prices in Ludhiana remained stable at INR 42,700/t DAP, indicating relatively balanced market conditions in the segment.
Steel market
Semi-finished steel prices in Mandi Gobindgarh decreased by INR 250/t d-o-d to INR 46,300/t DAP. Prices across other major steel-producing centres also declined by approximately INR 200-500/t, highlighting broad-based weakness in the secondary steel market.
In the finished-steel segment, Fe500 rebar prices in Mandi Gobindgarh remained stable d-o-d at INR 51,600/t ex-works. HR strip, or patra, prices also declined by INR 300/t to INR 51,200/t ex-works, extending the ongoing downtrend. Overall, weak downstream demand, limited mill procurement and pressure on selling prices continued to weigh on market sentiment
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 $365/t, approximately INR 36,900/t (inclusive of freight). HMS (80:20) in Mumbai fell by INR 50/t d-o-d to INR 35,250/t DAP. Indicative prices of shredded from Europe stood at $415/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 12,900/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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