- Sponge iron prices drop to a 4-year low in Mandi
- HR strip prices descend to a 4-month low
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 35,800/t DAP on 24 June, 2025.
The market is under pressure as buyers remain cautious, hoping for further price corrections before making significant deals. Meanwhile, sellers are facing challenges in moving finished steel amid subdued demand.
A mill owner informed, “Scrap availability in the market remains moderate, with mills procuring only as per their immediate requirements. Additionally, slower sales in finished steel have prompted scrap suppliers in Mandi to reduce their offers, intensifying competition and driving prices downward.”
Raw material prices
Sponge iron (CDRI) prices in Mandi fell by INR 200/t to INR 28,700/t, while in Ludhiana, steel-grade pig iron prices fell by INR 100/t to INR 35,700/t DAP.
Sponge iron prices tumbled to their lowest level in four years in Mandi. Level last observed on 18 February 2021
Steel market trends
Steel ingot prices remained stable d-o-d at INR 41,000/t DAP. A downward trend was seen across major regions where semi-finished steel prices also registered a d-o-d drop of INR 50/t to INR 200/t.
Rebar prices remained stable d-o-d at INR 45,700/t exw, as slow demand for finished steel weighed on the Mandi market.
HR strip (patra) prices fell by INR 43,000/t exw, Patra prices fell to a 4-month low in Mandi.
Overview of Alang market
Ship-breaking melting scrap prices in Gujarat’s Alang market saw a day-on-day drop of INR 400/t on 24 June. As per BigMint’s assessment, HMS (80:20) is now at INR 31,700/t ex-yard.
The decline comes in the wake of a slowdown in trading activity, which also impacted the regional semi-finished and finished steel markets, where prices fell by INR 400-600/t. In response to muted demand, suppliers were prompted to lower their scrap offers to stay competitive.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,000-5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $338-342/t, which equates to approximately INR 31,633/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 30,500/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 14,800/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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