- Scrap and sponge iron prices continue to decline
- Weak finished steel offtake keeps market sentiment cautious
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, softened by INR 200/tonne (t) d-o-d to INR 37,600/t DAP on 20 May 2026. Overall, scrap prices in the region declined by INR 100-300/t d-o-d.
A mill owner informed BigMint, “Amid limited steel demand and inventory pressure at mills, many buyers have reduced scrap buying volumes. Local scrap suppliers in Mandi are also grappling with over‑burdened credit lines. Additionally, mills have increased consumption of sponge iron in their steelmaking process due to its improved viability from Durgapur.”
Alternative raw material prices
The alternative metallics segment also reflected a softer trend. Sponge iron (CDRI) prices in Mandi Gobindgarh fell by INR 200/t to INR 30,900/t DAP amid slow bookings and improved availability. Steel-grade pig iron prices in Ludhiana eased marginally by INR 50/t to INR 41,800/t DAP as buyers maintained a need-based procurement strategy.
Steel market trends
Pressure in the finished steel segment further impacted scrap market sentiment. Ingot prices in Mandi Gobindgarh dropped by INR 300/t to INR 42,800/t DAP due to lower transaction volumes and weak market participation. Rebar (Fe500) prices declined by INR 300/t to INR 47,900/t ex-works, while HR strip prices softened by INR 400/t to INR 43,800/t ex-works.
Market participants indicated that sluggish finished steel offtake continued to restrict aggressive raw material bookings, with most mills limiting purchases to immediate production requirements.
Overview of Alang market
On 20 May 2026, ship‑breaking melting scrap prices in Alang, Gujarat, softened by INR 500/t d‑o‑d, as per BigMint’s assessment, leaving HMS (80:20) at INR 34,800/t ($359/t) ex‑yard. Thursday’s session saw semi‑finished and finished steel prices in the region falling by around INR 200-400/t due to tepid demand. With trade continuing at moderate levels, suppliers reduced offers today.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,300-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $377/t, approximately INR 38,800/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai increased by INR 200/t to INR 35,200/t DAP. Indicative prices of shredded from Europe stood at $400/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 14,250/t.
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