- Mills limit scrap purchases amid ample stocks
- Finished steel prices drop INR 50-200/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) to INR 34,100/t DAP on 2 September 2025.
Steel prices in Mandi Gobindgarh extended their downward trajectory this week, as limited trade activity and seasonal disruptions continued to weigh on market sentiment. Market participants highlighted a lack of active buying interest, with monsoonal challenges further dampening demand across the region.
Steel mills in the area largely restricted raw material procurement — particularly scrap and sponge iron — to need-based purchases only, citing already sufficient inventories.
Imported scrap trades remain paused, as domestic scrap prices are currently more viable. The ample availability of local scrap, combined with sluggish movement in the finished steel segment, left mills cautious on further procurement. Latest offers for light melting scrap (LMS) of Costa Rica origin were heard at $310-315/t CFR Mundra. However, Indian buyers remain largely uninterested at these levels, citing weak demand and more competitive domestic scrap availability.
Raw materials prices
The sponge iron (CDRI) market in Mandi Gobindgarh remained stable for the third consecutive day, with prices at INR 30,000/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana also maintained a steady trend over the past four days, trading at INR 35,500/t DAP.
Steel market trends
Semi-finished steel (ingot) prices in Mandi Gobindgarh slipped by INR 50/t d-o-d to INR 39,000/t DAP, pressured by sluggish demand and tightening conversion margins. Across key production hubs, ingot prices softened further, by INR 50-300/t d-o-d.
Rebar (Fe500) prices in Mandi also eased by INR 200/t to INR 43,900/t ex-works. Market sources noted a lack of active buying interest, with steelmakers expecting prices to continue declining in the near term amid subdued demand.
Auction result
On 1 September 2025, a leading motors and generator manufacturer based in Faridabad sold 1,000 t of CR punching scrap at INR 35,000/t on an ex-plant basis. The price reflects a decline of INR 2,100/t compared to the company’s previous monthly auction in August.
Upcoming 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 $332-$334/t, which equates to approximately INR 31,651/t (including freight). HMS (80:20) prices in Mumbai decreased by INR 100/t to 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 13,250/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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