Mandi Gobindgarh dictates the raw material costs for India’s Secondary Steel market. When you buy or sell ferrous materials here, the specific grade you source directly determines your Conversion Cost and operational margins. Currently, the market displays a massive price gap between baseline mixed yard metals and premium, ready-to-charge factory cuts. You must track these daily shifts to execute profitable trades and optimize your furnace feeds.
Grade-by-Grade Price Breakdown
Prices fluctuate daily based on moisture risk, sorting quality, and immediate demand from local Induction Furnace operators. All standard market figures exclude GST and internal Loading/Unloading Charges.
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Rail Cutting and heavy scrap top the market board at ₹39,500 to ₹40,500 per metric ton (MT). The high density of this material guarantees maximum furnace efficiency.
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End-Cutting from factory production lines trades between ₹36,500 and ₹38,500 per MT. Buyers prize this premium grade because it requires zero preparation before melting.
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HMS (Heavy Melting Scrap) 1 commands rates between ₹31,500 and ₹36,000 per MT. You must provide clean, thick-section steel plates above 6mm to hit the higher end of this bracket.
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CRC Scrap maintains a firm price of ₹35,500 to ₹38,300 per MT due to its consistent chemistry and exceptionally tight supply.
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Melting Scrap (LMS) moves steadily at ₹33,900 to ₹35,300 per MT. This grade comes pre-sized specifically for direct charging.
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Old Yard Scrap trades much lower, sitting roughly between ₹27,500 and ₹30,500 per MT. Gate inspectors aggressively dock this baseline mixed iron for dirt and impurities.
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Cast Iron fetches ₹29,000 to ₹31,000 per MT for industrial-grade pump bodies and machine bases, while lower-grade foundry scrap drops below ₹28,000.
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The Role of Substitute Materials
You cannot accurately analyze scrap pricing without tracking its primary alternatives. Mills constantly balance their feedmix to control input costs.
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Sponge Iron / CDRI currently trades near ₹28,500 to ₹29,300 per MT. When Sponge Iron remains cheap, it acts as a ceiling, capping exactly how much buyers will pay for standard mixed scrap.
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Pig Iron from nearby hubs offers structural pricing support for the entire region, trading near ₹40,800 per MT.
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MS Ingot and Billet serve as your semi-finished benchmarks, hovering between ₹42,600 and ₹42,800 per MT. The price spread between premium scrap and finished Ingot dictates mill profitability. When ingot prices rise, scrap bids invariably follow within 24 to 48 hours.
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Operational Factors Affecting Profitability
Sorting directly dictates your final payout at the factory gate. To upgrade your material, you must invest in proper shearing and baling. If you supply clean MS Iron Sheet or factory-direct scrap, mills award you a documentation premium. Conversely, delivering HMS 2 carries significant financial risk. Because it features thinner sections and retains higher moisture, gate inspectors frequently reclassify it or dock the total weight, immediately cutting into your revenue.
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You must also watch the finished steel offtake. When infrastructure and construction demand pull Rebar and TMT (currently near ₹47,800 per MT) upward, secondary steelmakers accelerate their production schedules. Rising finished product output forces mills to aggressively bid for available scrap lots, driving up the daily baseline rate across the entire Punjab corridor.
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To protect your margins and maximize returns, prioritize sorting your yard inventory meticulously. The massive ₹8,000-per-ton spread between premium End-Cutting and baseline mixed iron proves that mills pay strictly for melt efficiency, not raw weight. Monitor the daily movements of Sponge Iron and MS Ingot to time your bulk transactions effectively, ensuring you secure the highest possible factory-gate prices before market conditions shift.
Conclusion
You must treat scrap quality as your primary lever for profitability in the Mandi Gobindgarh market. The steep price gap between baseline iron and premium End-Cutting proves that secondary mills pay strictly for furnace efficiency, not just sheer volume.
To maximize your returns, actively sort your inventory and eliminate impurities before delivery to avoid gate deductions. Track the daily price spread between Sponge Iron and finished MS Ingot to accurately anticipate sudden rate shifts. By aligning your dispatch schedules with these leading indicators, you protect your Conversion Cost and secure the most profitable factory-gate trades.