India: BigMint’s scrap index stays flat amid stable steel demand

• Substitute raw material prices remain stable
• Finished steel prices inch up by INR 100/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, held steady d-o-d at INR 36,600/tonne (t) DAP on 17 March 2025.

A mill owner informed: “Mills continue to purchase domestic scrap in average quantities, as there has been no shortage of scrap in the market. Meanwhile, most large mills have maintained their regular production schedules. The use of sponge iron in the market has slightly increased nowadays. The market expects steel prices to remain range-bound, with ingot-billet prices staying steady between INR 42,000/t and INR 42,700/t in Mandi”.

Raw material prices

Prices of sponge iron (CDRI) in Mandi remained stable d-o-d at INR 31,200/t DAP, while steel-grade pig iron prices in Ludhiana were at INR 38,800/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained steady d-o-d at INR 42,400/t DAP. Meanwhile, semi-finished steel prices in key markets decreased by INR 100/t-200/t.

In Mandi Gobindgarh, rebar (Fe 500) prices moved up by INR 100/t to INR 47,000/t exw, while HR strip (patra) prices remained stable at INR 43,600/t exw.

Overview of Alang market

On 17 March, prices of ship-breaking melting scrap in Gujarat’s Alang market saw an increase of INR 100/t d-o-d, with HMS (80:20) priced at INR 33,600/t ex-yard. There was moderate demand for semi-finished and finished steel in the previous trading session, and ongoing scrap inquiries from Bhavnagar-based mills prompted suppliers to increase their offers today.

Auction update

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,900/t.

Domestic vs. imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-360/t, which equates to approximately INR 33,450/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $380-385/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 15,000/t.

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