India: BigMint’s scrap index holds steady d-o-d despite gains in finished steel prices

• Sponge iron tags improve by INR 100/t
• Finished steel prices rise INR 300/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 36,800/tonne (t) DAP on 10 February 2025.

The Mandi steel market witnessed a modest uptick in demand today, which led to a price increase in the finished steel segment, while semi-finished and scrap tags remained largely unchanged d-o-d. Mills expect ingot prices to remain at INR 42,200-42,900/t in the near future.

With imported scrap being less viable, mills prioritised locally sourced scrap, which is plentiful in the area. Currently, Mandi mills are using 85% scrap and 15% sponge for steel production.

Raw material price updates

In Mandi, sponge iron (CDRI) prices saw a slight uptick of INR 100/t d-o-d to INR 30,600/t DAP, whereas steel-grade pig iron prices in Ludhiana held steady at INR 36,000/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh held steady d-o-d at INR 42,600/t DAP, while semi-finished tags in major markets saw an increase of INR 100-300/t.

Prices of rebar (Fe 500) in the region climbed up by INR 300/t d-o-d to INR 47,200/t exw, despite demand being average or just above.

Overview of Alang market

Ship-breaking melting scrap prices in Gujarat’s Alang market rose by INR 200/t d-o-d on 10 February 2025, as per BigMint’s assessment. HMS (80:20) stood at INR 33,200/t exy. The hike comes amid an increase in the region’s semi-finished steel prices by approximately INR 300/t yesterday. This led to active inquiries for scrap, which encouraged suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-360/t, which equates to approximately INR 33,692/t (including freight). Local HMS (80:20) prices in Mumbai increased by INR 100/t d-o-d to INR 32,300/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 14,500/t.

To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.