- Sponge iron prices drop INR 100/t d-o-d
- Mills balance raw material purchase amid softening steel demand
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market edged up by INR 100 /t d-o-d, reaching INR 36,300/t DAP on 9 June 2025. A mild shortage of scrap in the Mandi Gobindgarh market prompted suppliers to raise their offers, despite ongoing sales pressure in the semi-finished and finished steel segments.
With domestic scrap availability tightening, steel mills are adjusting their production strategy. Most mills have shifted to a charge mix of 70-75% scrap and 25-30% sponge iron, supported by increased sponge iron arrivals in the region.
Meanwhile, containerised scrap trade remains limited, with buyers largely inactive. Imported scrap prices are holding steady, offering no significant incentive for aggressive restocking.
The current trend reflects cautious market sentiment, where mills are balancing raw material procurement with softening finished steel demand.
Raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh decreased by INR 100/t d-o-d to INR 29,300/t DAP. In Ludhiana, steel-grade pig iron prices were steady at INR 36,000/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh stayed steady at INR 41,600/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 100-500/t d-o-d.
Rebar (Fe 500) prices in Mandi declined by INR 100/t, settling at INR 46,900/t ex-works.
Overview of Alang market
Ship-breaking melting scrap prices in Gujarat’s Alang market decreased by INR 200/t d-o-d on 9 June. HMS (80:20) prices are at INR 32,600/t ($381/t) exy. According to sources, mills are having around 10-15 days of rebar inventory, and semi-finished and finished steel prices dropped by INR 200-500/t in the previous trading session in the region. This prompted scrap suppliers to decrease their offers today.
Upcoming auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,100-5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,000/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 200/t to INR 31,300/t DAP.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 15,050/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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