- Sponge iron prices increase by INR 100/t d-o-d
- Semi-finished steel prices rise by INR 200/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/tonne (t) d-o-d to INR 37,000/t DAP on 8 May, 2025. Major markets witnessed restricted trading activity today.
In Mandi Gobindgarh, domestic steel scrap prices held steady, with minor gains in certain grades attributed to tightening availability. While need-driven buyers kept the market active, most semi-finished and finished steel buyers were on the sidelines, wary of unfolding geopolitical uncertainties and their impact on the northern and north-western regions. Steelmakers responded to a short-lived spurt in spot demand by marginally raising prices today. Despite the subdued scenario, many mills expect a market recovery soon, supported by steady domestic and imported scrap flows.
The conversion margin from LMS (old scrap) to ingot is now 11,600/t, which was earlier at around 11,500/t in Mandi Gobindgarh.
Raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh edged up by INR 100/t d-o-d, now assessed at INR 30,500/t DAP. Meanwhile, Ludhiana’s steel-grade pig iron market softened, with prices slipping INR 50/t d-o-d to INR 36,350/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh rose by INR 200/t, reaching INR 42,600/t DAP, while rebar (Fe500) prices in Mandi held firm at INR 47,300/t exw today. Lacklustre demand continued to dampen market enthusiasm. Market participants remain cautious, awaiting clearer signals before making purchases.
Overview of Alang market
On 8 May, Alang’s ship-breaking scrap market continued its stable streak, with HMS (80:20) prices steady at INR 33,900/t ex-yard, according to BigMint. Trading activity for semi-finished and finished steel remained moderate yesterday. The combination of buying interest and limited scrap availability has kept suppliers confident of maintaining their current prices.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,800/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,101/t (including freight). Local HMS (80:20) prices in Mumbai remained steady at INR 33,000/t DAP. Indicative prices of shredded from Europe stood at $368/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 15,950/t.
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply