en.Wedoany.com Reported - BigMint's domestic Shredded Scrap Index (tracking the Mandi Gobindgarh market) rose by INR 600/tonne day-on-day on August 3, 2026, to INR 38,500/tonne (DAP, i.e., Delivered at Place). Scrap shortages prevailed during the day, with scrap prices rising by INR 500-600/tonne, while GST verification checks concurrently reduced scrap arrivals in the region.
A mill owner told BigMint that scrap shortages, GST verification checks, and logistical disruptions continued to pressure the Mandi steel market, providing support to scrap prices throughout the day. Semi-finished and finished steel prices rose by approximately INR 300/tonne day-on-day, with market sentiment remaining firm and supported by a broad base.
On alternative raw materials, sponge iron (CDRI, Cold Direct Reduced Iron) prices in Mandi Gobindgarh rose by INR 300/tonne day-on-day to INR 29,700/tonne (DAP). Pig iron prices in Ludhiana rose by INR 400/tonne day-on-day to INR 42,000/tonne (DAP), supported by improved trading sentiment and tighter supply.
In the steel market, semi-finished steel (billets) prices in Mandi Gobindgarh rose by INR 300/tonne day-on-day to INR 42,600/tonne (DAP), with other major production centers recording gains of INR 100-800/tonne during the day. In the finished steel segment, rebar (Fe500) prices rose by INR 300/tonne to INR 47,200/tonne (ex-works); hot-rolled strips (patra) also rose by INR 300/tonne to INR 47,600/tonne (ex-works). Local mills reported a slight improvement in finished steel demand in the Mandi market during the day.
In the Alang market, ship recycling scrap prices softened on August 3, with HMS (80:20) declining by INR 300/tonne day-on-day to INR 32,500/tonne (yard price). Monsoon disruptions limited ship recycling activity and tightened processed scrap supply, but the shortage was not sufficient to offset weak steel demand and bearish price expectations.
On price spreads, the differential between shredded scrap and billets in the Mandi market ranged between INR 4,200-4,600/tonne. On imported scrap, the import melting scrap price at Nhava Sheva port was assessed at USD 330/tonne, equivalent to approximately INR 33,745/tonne (including freight); HMS (80:20) prices in Mumbai remained stable at INR 32,600/tonne (DAP), with healthy regional scrap demand; European shredded scrap indicative prices stood at USD 394/tonne (CFR Nhava Sheva). The conversion spread (margin) between pellet-based DRI (P-DRI) and billets in Raipur stood at INR 13,300/tonne.
