- Sponge iron prices drop INR 100/t
- Semis, finished steel prices decline
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) d-o-d to INR 35,800/t DAP on 6 August 2025.
Today, semi-finished and finished steel prices in Mandi Gobindgarh witnessed a decline of INR 100-200/t. The price correction has dampened buying interest in scrap, with procurement activity remaining below moderate.
As a result, scrap sellers have adjusted their offers downward to align with the reduced demand. Despite a mild shortage of scrap in the market due to monsoon-related disruptions, the limited supply has not been sufficient to support prices in today’s session.
Raw material
Sponge iron (CDRI) prices in Mandi Gobindgarh declined by INR 100/t, settling at INR 30,200/t DAP. The dip reflects the ongoing slow buying activity in the region, as mills continue to adopt a cautious approach amid weak demand.
In contrast, pig iron prices in Ludhiana (Punjab) remained stable, holding firm at INR 35,800/t DAP with no significant trade movement reported.
Steel market trend
The semi-finished steel market in Mandi Gobindgarh witnessed a decline, with prices falling by INR 200/t d-o-d, closing at INR 40,700/t DAP. The downward trend reflects the ongoing sluggishness in buying activity, which continues to weigh on market sentiment.
This bearish trend was mirrored across major steel hubs in the country, where prices softened by INR 100-350/t. Among them, Raigarh reported the sharpest decline, with prices dropping by INR 350/t today alone-marking a total correction of INR 600/t over the past two sessions.
Overview of Alang
On 6 August, ship-breaking melting scrap prices in Gujarat’s Alang market dropped by INR 100/t on a d-o-d basis. As per BigMint’s assessment, HMS (80:20) is now priced at INR 31,900/t ex-yard.
The decline in scrap prices aligns with the broader downtrend in the semi-finished steel market, which saw prices in the region falling by INR 100-200/t in yesterday’s session. Weak demand and cautious buying activity continue to pressure both scrap and steel markets, leading to subdued sentiment across the value chain.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,800-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $336/t, which equates to approximately INR 31,695/t (including freight). HMS (80:20) prices in Mumbai fell by INR 100/t to INR 31,300/t DAP today. Indicative prices of shredded from Europe stood at $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 12,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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