- Ongoing GST inspections disrupt scrap trade
- Finished demand weak, mills face sales pressure
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 36,400/t DAP on 16 June 2025.
Ongoing GST inspections and enforcement activities in Mandi have disrupted scrap trade, limiting high-volume deals from neighbouring states. As a result, amid tightening supply, mills struggled to source scrap at competitive price tags, with suppliers raising offers for certain grades. Adding to the strain, finished steel demand was weak, and mills faced growing inventory pressure, dampening overall market sentiment. This ultimately prevented an increase in scrap prices.
A mill owner informed BigMint, “Steelmakers in Mandi remain optimistic that the market has hit its lowest point for finished steel prices and believe that raw material tags are also on track to bottoming out soon. Amid slow trading activity, ingot prices are projected to stabilise within a narrow band of INR 41,500-42,000/t.”
Alternative raw materials prices
Sponge iron (CDRI) prices in Mandi Gobindgarh edged up by INR 200/t d-o-d to INR 29,200/t DAP. Meanwhile, steel-grade pig iron in Ludhiana saw a decline of INR 200/t d-o-d to INR 35,800/t DAP.
In Mandi, a shortage of scrap led to growing bid-offer gaps between buyers and mills, pushing up demand for sponge iron, which remains readily available in the region.
Steel market trends
Steel ingot prices in Mandi Gobindgarh rose by INR 200/t d-o-d to INR 41,700/t DAP, supported by tight scrap availability. Semi-finished steel prices across other regions also edged up by INR 50-200/t. The ongoing scrap shortage prompted manufacturers to increase prices. Meanwhile, rebar prices in Mandi were unchanged at INR 46,600/t exw, with overall trading activity remaining subdued.
Overview of Alang market
On 16 June 2025, ship-breaking scrap prices at Alang, Gujarat, were stable d-o-d, with HMS (80:20) quoted at INR 32,500/t exy, as per BigMint’s assessment. A stability in semi-finished and finished steel prices, along with moderate trade volumes, supported sellers in maintaining firm offers. Currently, around 30 ships are lined up at Alang for dismantling.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,200-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $340-345/t, which equates to approximately INR 31,858/t (including freight). Today, local HMS (80:20) prices in Mumbai decreased by INR 400/t d-o-d to INR 30,800/t DAP. Indicative prices of shredded from Europe stood at $360-$365/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 14,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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