- Sponge prices improves INR 350/t w-o-w
- Semis, finished steel price advance by INR 230-275/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed by INR 600/t d-o-d to INR 42,600/t DAP on 11 Sept 2026. The scrap index eased by INR 220/t w-o-w. Due to excessive scrap arrivals during the current week, coupled with power cuts in Mandi Gobindgarh, a majority of steel mills have temporarily halted scrap purchases. This has been the primary reason for the slight softness in prices observed this week. However, with demand expected to pick up and mill operations likely to normalise, prices are anticipated to show some improvement in the coming week.
Mandi Gobindgarh, India’s key secondary steel hub, continued its positive run as both scrap and finished-steel prices advanced sharply. On 11 September, 2026, HMS and melting-scrap values in the mandi rose by INR 500-INR 600/t day-on-day, extending gains recorded earlier in the week. Finished-steel prices, particularly for rebar and structural grades, also firmed, supported by stronger realisations in northern consuming markets and improved sentiment among stockists. On a week-on-week basis, steel prices posted decent increases, reflecting a shift from the cautious tone seen in August to a more constructive market environment.
Demand in the current week has been moderate but steady, with steelmakers and re-rollers building inventories in anticipation of further upside in steel prices next week. Raw-material support-from firmer sponge iron and scrap-has been a key driver, with Mandi-based mills increasingly sourcing direct sponge iron from the West Bengal and Jharkhand belt to optimise charge costs. Scrap arrivals into the mandi have remained healthy, ensuring adequate liquidity in HMS and melting grades, while local traders report better enquiry levels from Punjab, Haryana, and Himachal buyers. If finished-steel demand holds and raw-material prices stay firm, Mandi Gobindgarh is likely to maintain its upward momentum in the near term, though participants remain watchful of any sharp moves in import parity and regional logistics costs.
Raw material and steel market trends
Sponge iron prices in Mandi Gobindgarh rose by INR 300/t d-o-d to INR 34,400/t DAP. The weekly trend remains firmly positive, with prices up INR 340/t, supported by improved buying interest and steadier market sentiment.
In Ludhiana, pig iron prices increased by INR 350/tonne d-o-d to INR 42,800/tonne DAP. However, on a weekly basis, values edged lower by INR 180/tonne, reflecting mixed demand from local foundries and casting units.
In the finished-steel segment, Mandi ingot prices advanced by INR 500/t d-o-d to INR 47,300/t, taking the weekly gain to INR 275/t. Rebar ex-mill prices improved by INR 600/t d-o-d to INR 52,400/t, extending the weekly increase to INR 230/t as mills passed on higher raw-material costs and benefited from firmer demand in northern markets.
Overview of Alang market
Ship-breaking melting scrap (HMS 80:20) prices in Alang climbed by INR 100/t day-on-day to INR 37,300/t ($390/t) ex-yard on 11 September, 2026, as firmer steel prices and improved sentiment encouraged mills to step up procurement after weeks of cautious buying.
On a weekly basis, Alang HMS 80:20 prices are up by INR 660/t, reflecting renewed confidence among traders and secondary steel producers amid a broader uptrend in finished-steel realisations across key consuming regions. Market participants noted that mills, which had been operating with lean inventories, are now more willing to secure scrap supplies as profitability outlooks improve.
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,500-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $370-$375/t, approximately INR 37,930/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 35,500/t DAP. Indicative prices of shredded from Europe stood at $416-$417/t CFR Nhava Sheva. In Mumbai a leading mill owner booked around 1,700 t HMS(80:20) scrap at INR 35,000-35,500/t DAP.
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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