- Scrap prices plunge to 6-month low in current week
- Competitive pressure from nearby markets continues
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 35,800/t DAP on 27 June 2025. Additionally, steel scrap prices in the Mandi Gobindgarh market declined by INR 500/t w-o-w, reflecting ongoing demand weakness and mounting pressure on mills.
Throughout the week, buying activity remained sluggish, with mills facing challenges on both sales and inventory fronts. Scrap prices declined to a six-month low this week, revisiting levels last seen on 3 December 2024.
The market also continues to face pressure from the competitive pricing of semi-finished and finished steel products from neighbouring states, which is affecting local transaction volumes and price realisations.
Despite a mild shortage of domestic scrap, there was no significant impact on steel prices. Additionally, buyers adopted a cautious stance towards imported scrap, amid prevailing market uncertainties and limited clarity on near-term demand.
Market sentiment remains muted, with most mills not expecting any near-term price recovery. Industry participants believe that steel prices may have bottomed out, having hit a nine-month low this week. As a result, the market is likely to remain range-bound in the near future.
Some mills expect a slight improvement through pre-monsoon bookings in the northern region, which may offer temporary relief and ease inventory pressure. However, with overall demand still on the back foot, any substantial price rebound appears unlikely in the short term.
Raw material prices
Sponge iron (CDRI) prices in Mandi remained stable on a d-o-d basis at INR 28,900/t DAP. However, on a w-o-w basis, prices declined by INR 200/t in the region.
Steel-grade pig iron prices in Ludhiana fell by INR 200/t d-o-d, settling at INR 35,400/t DAP. On a w-o-w basis, prices registered a decline of INR 250/t.
Steel market trends
Semis prices in Mandi fall by INR 200/t d-o-d
Semi-finished steel prices in Mandi Gobindgarh dropped by INR 200/t on a d-o-d basis, settling at INR 41,000/t DAP. This decline mirrors the broader market softness, with semi-finished steel prices slipping by INR 50-200/t d-o-d across other key trading hubs. On a w-o-w scale, ingot prices fell by INR 430/t, reinforcing bearish sentiment.
Rebar prices hold steady d-o-d in Mandi, but weekly trend turns negative
Rebar (Fe500) prices in Mandi Gobindgarh remained stable d-o-d at INR 45,900/t exw today. However, on a w-o-w basis, prices dropped by INR 700/t, driven by elevated inventory levels and subdued buying interest, which prompted mills to adjust their offers downward.
Overview of other markets
Hyderabad: Raw material sourcing subdued amid cautious buying
Raw material procurement in the Hyderabad market remained low to moderate, reflecting continued caution among buyers. While billet prices were quoted at slightly higher levels, the market saw limited movement, as buyers resisted purchasing at elevated rates, leading to overall price stability.
In the finished steel segment, buying activity was restricted to immediate or need-based requirements, indicating a lack of confidence in sustained price momentum. The market continued to display a wait-and-watch approach, with participants closely monitoring price trends before committing to larger volumes.
Rebar prices in the region remained stable d-o-d at INR 44,500/t. In contrast, steel billet prices declined by INR 500/t, settling at INR 39,000/t exw. Meanwhile, steel-grade pig iron prices held steady at INR 33,500/t exw, showing no change d-o-d.
Upcoming scrap 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 $333-335/t, which equates to approximately INR 30,846/t (including freight). Today, local HMS (80:20) prices in Mumbai remained steady d-o-d at INR 31,000/t DAP. Indicative prices of shredded from Europe stood at $360/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 14,700/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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