- Rebar prices decline by INR 700/t w-o-w
- Weak finished steel offtake pressures scrap prices
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 300/tonne (t) d-o-d to INR 37,300/t DAP on 22 May 2026. Scrap prices in the region fell by INR 700/t w-o-w.
Mandi Gobindgarh, a key secondary steel hub in northern India, continued to witness a bearish sentiment this week as end-user demand remained limited and buying interest stayed cautious. Mills reported slower sales and increasing stock build-up, which added further pressure on operating margins. Rebar prices fell by INR 700/t w-o-w, while ingot and billet values declined by INR 800/t, reflecting weak finished-steel offtake and persistent selling pressure in the local market.
Local ferrous scrap supply remained constrained, with suppliers facing credit stress and limited working capital availability. Labour shortages also disrupted domestic scrap processing in several pockets, reducing the flow of material into the market.
Imported scrap continued to remain unattractive for many secondary steelmakers because of dollar-linked pricing pressure and ongoing geopolitical uncertainty. This kept procurement limited and increased dependence on domestic material sources.
Finished steel demand remained weak through the week, particularly from local trade and smaller end-user segments. Lower buying volumes led to slower movement of rebar and semi-finished products, while mills preferred to clear inventory rather than chase higher production volumes.
A mill owner informed: “Near-term sentiment is likely to remain cautious unless there is a visible recovery in downstream demand or a meaningful correction in raw material costs. For now, mills are expected to remain defensive, focusing on inventory control and selective procurement.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh moved down by INR 600/t d-o-d to INR 30,300/t (DAP). Prices dipped by INR 700/t w-o-w.
Steel-grade pig iron prices in Ludhiana remained stable d-o-d at INR 42,600/t (DAP), while prices improved by INR 500/t w-o-w with limited availability.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh declined by INR 300/t d-o-d, settling at INR 42,500/t DAP. Other major production hubs also witnessed price drops in the range of INR 100-400/t in today’s trading session. As per weekly basis, ingot prices in the region softened by INR 800/t.
Rebar (Fe500) prices in Mandi Gobindgarh decreased by INR 300/t d-o-d to 47,600/t ex-works. Meanwhile, w-o-w prices eased by INR 700/t.
Overview of Mumbai market
Rebar (Fe 500) prices on the Mumbai IF route market remained largely stable today at around INR 46,800/t ex-works. Market activity remained subdued, with buying interest limited to need-based procurement and low to moderate enquiries reported during the day. Bids continued to be placed at lower levels, as buyers maintained a cautious wait-and-watch stance amid expectations of further price corrections in the near term.
Mill inventory levels continued to rise amid subdued demand conditions and limited buying interest in the market, with current inventory levels estimated at around 10-12 days. No major bulk bookings were reported during the day.
On the raw material side, HMS (80:20) scrap was assessed at INR 35,200/t DAP, with the scrap-billet conversion spread hovering around INR 6,800/t.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,000-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $378/t, approximately INR 38,570/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai remained stable d-o-d at INR 35,200/t DAP. Indicative prices of shredded from Europe stood at $398/t-$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 14,050/t.
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