- Sponge iron, pig iron tags rise by INR 100/t
- Semi-finished prices gain by INR 200/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/tonne (t) d-o-d to INR 36,500/t DAP on 2 June 2025.
A mill owner informed BigMint, “In the previous trading session on 31 May 2025, the Mandi steel market witnessed moderate activity. While steelmakers had expected a similar trend to continue today, the market opened differently compared to Saturday’s session, with strong price gains. Despite a slightly positive start to the month, overall sentiment remains below average, with notable pressure on producers. In the near term, the market is expected to remain range-bound, with semi-finished steel prices in Mandi hovering within INR 41,500-42,200/t.”
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 29,800/t DAP. In Ludhiana, steel-grade pig iron prices rose by INR 100/t to INR 36,100/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh rose by INR 200/t d-o-d to INR 41,900/t DAP. Simultaneously, semi-finished steel prices across other regions recorded an uptick of INR 100-600/t, indicating a mildly positive trend in the market today.
Rebar prices in Mandi remained stable d-o-d at INR 46,800/t exw, while HR strip (patra) prices improved by INR 400/t to INR 44,300/t exw.
Overview of other markets
Durgapur sees modest steel price gains: The Durgapur steel and scrap markets witnessed a slight improvement, largely influenced by trends in the Mandi market. Billet prices rose by INR 350/t d-o-d to INR 39,050/t DAP, while rebar (Fe500) tags remained stable at INR 41,400/t exw. Scrap prices saw a modest gain of INR 100/t to INR 32,700/t, and sponge iron (PDRI) jumped by INR 300/t to INR 23,000/t DAP. Overall, the market remained subdued, with limited activity from downstream buyers.
However, local demand for both finished and semi-finished products remained sluggish. Contributing to the cautious sentiment, a leading pig iron manufacturer recently slashed prices by around INR 1,000/t across both steel and foundry grades. This price cut led local mills to adopt a wait-and-watch approach, holding back from immediately purchasing more material.
Melting scrap prices climb up in Alang: On 2 June 2025, ship-breaking melting scrap prices in Alang, Gujarat, rose by INR 400/t d-o-d, according to BigMint’s assessment. HMS (80:20) was assessed at INR 32,900/t exy. The uptick in prices was driven by increased inquiries for scrap and stronger demand for both semi-finished and finished steel in the previous trading session. This prompted scrap suppliers to raise their offers. Additionally, around 30-32 ships are currently awaiting dismantling at the Alang yard, which could further influence scrap availability and pricing in the near term.
Major auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,300-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,089/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $365-$370/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 15,550/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply