- Sponge iron prices decrease by INR 200/t
- Most mills using 40-50% sponge iron in mix
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, inched up by INR 100/tonne (t) d-o-d to INR 35,900/t DAP on 1 July 2025.
Today, the Mandi steel market remained largely rangebound, with only minor price fluctuations observed. According to mill owners, the market continues to face sales pressure as the medium and small mills struggle to sell their finished products.
Additionally, a mild shortage of scrap and ongoing discrepancies between scrap buyers’ bids and sellers’ offers are further confounding the situation. Recent GST raids have disrupted the supply chain, adding to the overall market uncertainty.
A mill owner informed: “The Ludhiana steel market experienced a slowdown today, largely due to rainfall in the northern region. Overall steel demand remained below moderate levels. While prices saw a slight increase, the upward movement was not supported by strong buying activity.”
Raw material prices
Sponge iron (CDRI) prices in Mandi declined by INR 200/t, settling at INR 38,800/t DAP. Meanwhile, steel-grade pig iron prices remained steady d-o-d at INR 35,400/t on a DAP basis.
Steel market trends
Semi-finished steel prices in Mandi Gobindgarh rose marginally by INR 100/t d-o-d, settling at INR 41,100/t (DAP). This modest uptrend reflects a generally rangebound market, with similar price increases of INR 100-200/t observed in some areas, while other markets experienced price decreases within the same range across major trading hubs.
Rebar (Fe500) prices in Mandi Gobindgarh remained stable d-o-d at INR 45,800/t exw today.
Overview of other markets
In the Jalna market in western India, billet prices saw a marginal correction of INR 100/t, settling at INR 39,200/t. Meanwhile, prices for rebar and HMS 80:20 scrap remained stable at INR 44,300/t and INR 30,500/t, respectively.
According to market participants, demand for finished steel remains moderate, largely attributed to the ongoing monsoon season, which typically slows down construction activity.
Despite lower scrap inflows to the mills, there has been no aggressive buying or upward price movement observed for scrap. This is primarily because mills are currently using 40-50% sponge iron in their charge mix, reducing dependence on high scrap procurement.
Auction result
A leading electric motors and generators manufacturing unit in Faridabad, Haryana, recently conducted an auction for approximately 1,000 t of CR busheling scrap. The entire quantity was sold at price ranging between INR 34,850 and INR 34,950/t (ex-plant). Bids showed an increase of INR 550 to INR 650/t compared to the previous auction.
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 30,872/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 14,500/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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