Steel TMT Prices Going Up. What It Means For Your Scrap Business.
The cost to make steel is rising. Raw materials like sponge iron and scrap are up by ₹1,000/tonne. This means mills are charging more for steel rods. Here’s what it means for you.
The steel market is getting hot. In the last week, prices for steel TMT bars have gone up. This is because the materials used to make them, sponge iron and old steel scrap, have become more expensive.
Mills have no choice but to raise their prices.
This isn't because lots of new construction is happening, but because raw materials are more expensive. So, what should you do? Buy, sell, or wait?
What is Changing?
The main reason for the price rise is the cost of raw materials.
Sponge iron prices have gone up by ₹800 to ₹1,300 per tonne in one week. This is because coal, which is used to make sponge iron, is more expensive now.
Steel scrap prices have also increased. In markets like Mandi Gobindgarh and Ludhiana, good quality scrap is selling for more. Because of this, the mills that use scrap to make steel rods have had to increase their prices.
The Numbers You Should Know
| Item | Market | Price (per Tonne) | Date (2026) |
|---|---|---|---|
| Steel Rod (TMT) | Raipur | ₹44,500 | Aug 21 |
| Steel Long | Mandi Gobindgarh | ₹44,600 | Aug 24 |
| Sponge Iron | Raipur | ₹28,500 | Aug 24 |
| Iron Punching Scrap | Jalna | ₹38,300 | Aug 26 |
| End-Cutting Scrap | Mandi Gobindgarh | ₹38,400 | Aug 26 |
| Old Scrap (HMS 1&2) | Mandi Gobindgarh | ₹36,300 | Aug 25 |
Note: These prices do not include GST.
What It Means For Your Business
What you should do depends on if you are buying or selling.
If you SELL scrap: This is a good time for you. Mills need your scrap and are paying a good price. Sell what you have in stock now. Don't wait. Waiting is a risk. Take the high rate today.
If you BUY scrap: Your profits are getting squeezed. The cost of your raw material has gone up more than the price of your final product. You should buy the scrap and sponge iron you need for the next few weeks right now. Prices will likely go up more before they come down.
The Bigger Picture
Will this last?
Right now, the high price is because of expensive raw materials, not because more people are buying steel. Government projects are helping, but we need to see if construction demand picks up after the monsoon rains.
If construction gets busy in September, these high prices will stay. If not, prices might fall again because mills won't be able to sell their expensive steel.
What You Should Do This Week
- Sellers: Sell your scrap now. Don't wait. The price is good.
- Buyers: Buy enough raw material for the next 2-3 weeks.
- Traders: Watch the price of sponge iron. If it moves, scrap and steel will follow.
- Everyone: Keep an eye on construction demand. That is the real test.
The One Thing to Remember
This week, the price is set by the furnace, not the construction site.
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