India: BigMint’s scrap index holds steady amid weak steel demand

• Labour shortages tighten local scrap supply
• Narrow mill margins prevent price uptrend

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 37,600/tonne (t) DAP on 21 May 2026.

Mandi Gobindgarh’s secondary steel market continues to face severe margin pressure as weak finished steel demand has led to inventory accumulation, tighter working capital conditions, and rising financial stress for mills. At the same time, acute labour shortages have disrupted domestic scrap processing, resulting in tight local scrap availability.

As a result, mills seeking to secure material have raised auction bids, allowing suppliers to maintain firm prices. Conversely, elevated dollar-linked costs and ongoing geopolitical tensions have made imported scrap commercially unviable, limiting procurement options for local furnaces.

Alternative raw material prices

Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 30,900/t DAP. However, steel-grade pig iron prices in Ludhiana were up significantly by INR 800/t to INR 42,600/t DAP, driven by a local shortage of raw materials.

Steel market trends

In Mandi Gobindgarh, semi-finished steel (ingot) prices remained unchanged d-o-d at INR 42,900/t DAP, reflecting soft steel demand. In other major production centres, ingot prices declined by INR 100-300/t d-o-d.

In Mandi Gobindgarh, rebar (Fe500) prices were steady d-o-d at INR 47,900/t ex-works today, reflecting subdued trading volumes. Rebar prices in Mandi have declined by INR 800/t in the past three working days.

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 $378/t, approximately INR 38,700/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 $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 14,100/t.

To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here

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