India: BigMint’s scrap index falls by INR 100/t amid market inertia

• Sponge iron prices remain stable for two straight days
• Scrap and semi-finished steel prices dip INR 100/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 100/t to INR 34,800/t DAP on 28 August 2025.

The Mandi steel market is currently experiencing a lull, marked by an uncertain and unclear trend. Demand for both semi-finished and finished steel remains weak, further dampened by the unfavorable impact of the ongoing rainy season on the steel and iron sectors. Adding to the challenges, global steel market sentiments have remained subdued over the past few months, reflecting broader concerns that continue to weigh on the industry’s outlook.

Recent initiative

The Iron Scrap Welfare Association, Mandi Gobindgarh, has raised the demand for reconsideration of GST rates on iron scrap: Currently, primary steel incurs 18% GST, and recycled old scrap incurs the same, causing double taxation. The Association is requesting the GST Council to reduce GST on light melting scrap-old scrap (80% of scrap) to 5%, while keeping industrial scrap at 18%, with separate HSN codes for clarity. This will reduce tax evasion, improve compliance, and promote recycling and environmental sustainability.

Raw material

The sponge iron (CDRI) market in Mandi Gobindgarh remained stable for the second consecutive day, with prices holding firm at INR 30,100/t DAP. In contrast, steel grade pig iron prices in Ludhiana saw a d-o-d decline of INR 300/t, settling at INR 35,500/t DAP amid muted buying activity today.

Steel market

Today, semi-finished steel prices in Mandi Gobindgarh dipped by INR 50/t, closing at INR 30,700/t DAP. Across major production hubs, steel ingot prices displayed a mixed trend, with fluctuations ranging from INR 50-150/t downward in some areas, while other regions experienced increases between INR 100-200/t.

The finished steel segment continues to grapple with challenges as Rebar (Fe500) prices in Mandi Gobindgarh remained steady day-on-day at INR 44,500/t ex-works, amid uncertain market conditions

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 $333-$335/t, which equates to approximately INR 31,547/t (including freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 30,800/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 13,600/t.

To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.