- Semis, finished steel prices drop INR 150/t w-o-w
- Weak steel demand, ongoing GST scrutiny weigh on market
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 200/tonne (t) d-o-d to INR 35,800/t DAP on 4 July 2025. Additionally, steel scrap prices in the Mandi Gobindgarh remained range bound w-o-w. Slight scrap shortage persisted in the major market.
Scrap purchases hit by GST checks, mills await demand revival
In the current Week 27, scrap prices have largely held steady, with minimal fluctuations and subdued trading activity across the market. The persistent weakness in finished steel demand continues to exert downward pressure on mandi-based mills, limiting their purchasing appetite.
Adding to the cautious sentiment, the region has seen a modest uptick in imported scrap bookings, further impacting domestic transactions. Scrap movement from other states has also slowed considerably, primarily due to intensified GST inspections at mandi locations. These regulatory checks are disrupting routine scrap procurement, resulting in ongoing shortages for mills.
Despite these challenges, steelmakers remain cautiously optimistic. There is hope that an improvement in demand will provide support in the near term. For now, mandi ingot prices are expected to remain rangebound, hovering between INR 40,800 and INR 41,300/t.
Mill owners in Mandi are presently receiving offers for imported scrap at the following price levels.
Raw material prices
Mandi sponge iron prices see modest uptick, Weekly trend stable
Sponge iron (CDRI) prices in Mandi rose by INR 100/t today, reaching INR 28,800/t DAP. Despite this daily increase, prices have remained unchanged on a week-on-week basis.
Ludhiana pig iron prices edge up d-o-d, Extend weekly downtrend
In Ludhiana, steel-grade pig iron prices marginally increased by INR 100/t day-on-day, settling at INR 35,200/t DAP. However, on a weekly comparison, prices have dropped by INR 350/t, marking the third consecutive week of declines since Week 24. This ongoing downward trend highlights persistent pressure in the pig iron segment, even as daily price movements show minor recoveries.
Steel market trends
Weekly steel market slips: Ingot and rebar prices down INR 150/t
Semi-finished steel prices in Mandi Gobindgarh rose by INR 150/t d-o-d, reaching INR 40,900/t delivered at place (DAP). This upward movement aligns with the overall market’s rangebound trend, which has seen limited volatility. Across other major trading hubs, semi-finished steel prices also recorded modest gains in the range of INR 50-300/t on a daily basis. However, on a week-on-week basis, ingot prices declined by INR 150/t, reflecting continued bearish sentiment in the market.
Rebar (Fe500) prices in Mandi Gobindgarh held steady on a d-o-d basis at INR 45,500/t ex-works. However, on a weekly basis, prices declined by INR 150/t. The dip was primarily attributed to weak buying interest, which led mills to revise their offers downward in response to sluggish market demand.
Overview of Durgapur steel market
On 4 July 2025, Durgapur’s steel market displayed notable price stability, with most key products maintaining previous levels. Steel grade pig iron was unchanged at INR 32,300/t ex-works, while HMS (80:20) scrap held steady at INR 32,000/t DAP. The only upward movement was seen in sponge iron (PDRI), which increased by INR 150/t to INR 23,150/t DAP. Rebar (Fe500) prices also remained constant at INR 40,500/t ex-works. Market sentiment remained subdued, with limited demand activity characterizing the week.
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 $333-335/t, which equates to approximately INR 30,827/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 100/t to INR 30,700/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 13,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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