- DRI prices fall by INR 100/t d-o-d
- Finished steel prices remains steady today
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined slightly by INR 200/tonne (t) d-o-d to INR 36,600/t DAP on 7 February, 2025.
Demand continues to remain weak in the Mandi steel market while mills are procuring scrap strictly on need basis. Due to the current market conditions, scrap buying is slow, leading to a weekly price drop of around INR 500-700/t.
Raw material price updates
In Mandi, sponge iron (CDRI) prices dropped by INR 100/t to INR 30,300/t DAP. Likewise, steel-grade pig iron prices in Ludhiana remained stable at INR 36,000/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh fell slightly by INR 100/t to INR 42,400/t DAP during the reporting and normalisation period. However, semi-finished steel prices in other major markets saw a decline of INR 100-200/t today.
Additionally, rebar (Fe 500) prices in Mandi Gobindgarh held firm at INR 47,000/t exw.
Overview of others market
Mumbai: Prices of IF-route rebar (Fe 500) in Mumbai remained stable at INR 47,100/t exw. Moderate buying activity was seen in the market for finished steel. The current pricing of scrap (HMS 80:20) is INR 32,200/t DAP. The conversion spread between scrap and billets is around INR 9,800/t.
Alang: On 7 February 2025, ship-breaking scrap prices in Alang, Gujarat, continued to hold firm for the second day. BigMint reported HMS (80:20) at INR 33,000/t ex-yard. With moderate trade activity in semi-finished and finished steel, prices rose by INR 300-500/t, while ongoing scrap demand encouraged suppliers to maintain stable pricing.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,600-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $352-356/t, which equates to approximately INR 33,357/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 32,200/t DAP. Indicative prices of shredded from Europe stood at $370-$375/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 14,050/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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