- Semis, finished steel prices fall by INR 150-250/t w-o-w
- Steel prices continue to edge lower on slow trade activity
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 35,600/t DAP on 11 July, 2025. End-cutting scrap prices remained largely stable over the past week, supported by moderate buying activity and supply shortages, while prices for other grades of scrap fell marginally by around INR 100-190/t. However, demand for semi-finished and finished steel continued to show weakness.
Buyers remain cautious, holding back in anticipation of potential price corrections. In contrast, steelmakers believe the market may have already hit its bottom, with expectations of a gradual upward shift in the near term.
Overall, the market remains in a state of uncertainty, marked by subdued trading sentiment and a tug-of-war between buyer hesitation and mill optimism. Market participants are closely watching upcoming trends for clearer direction.
A mill owner informed, “A slight shortage of scrap has been observed in the market this week, primarily due to increased GST enforcement, which has slowed the movement of scrap from other states. This regulatory pressure is disrupting supply chains and impacting overall scrap availability.”
To offset the limited scrap inflow, mills have actively turned to sponge iron procurement to ensure uninterrupted raw material supply for steel production. While the impact is currently manageable, continued delays in scrap movement could add pressure on input costs and production planning in the near term.
Imported scrap offers
Raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh declined by INR 200/t d-o-d, settling at INR 29,000/ton DAP. Despite the daily drop, prices showed a modest w-o-w gain of INR 185/t, supported by slightly improved buying interest earlier in the week.
Meanwhile, steel-grade pig iron prices in Ludhiana remained unchanged at INR 35,200/ton DAP on both daily and weekly bases, reflecting stable market dynamics and balanced demand-supply conditions.
Steel market trends
In the Mandi Gobindgarh market, semi-finished steel prices declined by INR 200/t d-o-d, closing at INR 40,500/t DAP. This drop reflects the broader weakness in the steel market, where semi-finished prices across key trading hubs slipped INR 100-400/t d-o-d.
On a weekly basis, ingot prices in Mandi have fallen by INR 250/t, reinforcing the prevailing bearish sentiment. The consistent price erosion signals subdued demand and cautious buying behavior, keeping mills on edge and prompting close monitoring of upcoming market triggers.
Rebar (Fe500) prices in Mandi Gobindgarh remained unchanged day-on-day at INR 45,500/t ex-works today. However, on a w-o-w basis, prices registered a decline of INR 150/t. The price correction is attributed to rising inventory levels and muted buying interest, which compelled mills to lower their offers in an effort to stimulate demand.
Overview of Mumbai market
Rebar (Fe 500) prices on the Mumbai IF market remained stable at INR 43,500/t exw. Limited buying interest, with buyers limiting purchases to immediate requirements.. Scrap (HMS 80:20) is currently priced at INR 30,700/t DAP, while the conversion spread between scrap and billet stands at approximately INR 8,500/t.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,900-5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $330-335/t, which equates to approximately INR 30,978/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at 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 13,350/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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