- Sponge iron prices remain steady d-o-d
- Semi-finished steel tags dip by INR 100/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 36,300/t DAP on 3 June, 2025.The market remained range-bound today, with mills procuring scrap in moderate volumes amid ongoing sales pressure.
A mill owner informed: “The Mandi steel market saw a slight uptick in finished steel activity compared to the previous trading session, with prices rising by INR 300/t. However, the semi-finished segment continued to see sluggish movement. A mild shortage of scrap, coupled with ample availability in sponge iron, put pressure on scrap suppliers, prompting them to lower their offers today. Mills anticipate that ingot and billet prices in the region will remain range-bound in the near term, hovering between INR 41,500/t and INR 42,200/t.”
Raw material prices
Sponge iron (CDRI) prices in Mandi remained stable d-o-d at INR 29,800/t, while in Ludhiana, steel-grade pig iron prices fell by INR 100/t to INR 36,000/t DAP.
Steel market trends
In Mandi Gobindgarh, steel ingot prices fell marginally by INR 100/t to INR 41,800/t DAP. This downward trend mirrored movements across major regions where semi-finished steel prices also registered a d-o-d drop of INR 100/t to INR 500/t.
Rebar prices in Mandi rose by INR 300/t today, reaching INR 41,700/t ex-works, while HR strip (patra) prices remained unchanged d-o-d at INR 44,300/t ex-works. Overall, trade activity in the finished steel market was reported to be average.
Overview of Jalna market
In western India’s Jalna market, billet prices declined by INR 400/t to INR 41,000/t, while rebar and HMS 80:20 remained stable at INR 46,500/t and INR 32,200/t, respectively. The early arrival of the monsoon has kept finished steel demand at an average level and has simultaneously slowed scrap collection and supply. In response, mills in the region are reportedly incorporating 20-40% sponge iron in their charge mix to manage conversion costs and address the limited scrap availability.
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Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 31,992/t (including freight). Today, local HMS (80:20) prices in Mumbai decreased by INR 100/t to INR 32,200/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 15,400/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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