- Strong supply, regional competition weigh on prices
- Semis, finished steel prices drop by INR 200/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 200/tonne (t) d-o-d to INR 33,900/t DAP on 3 September 2025.
Over the past 13 days, domestic steel scrap prices in Mandi have experienced a significant decline of approximately INR 1,700-1,900/t. This downtrend reflects a weakening steel market sentiment in the region.
Meanwhile, scrap inflow remained robust, exerting additional pressure on prices. The anticipated reduction of GST on scrap from 18% to 5% in neighbouring states also impacted suppliers, further intensifying competitive pressures.
Moreover, subdued demand from mills — driven by sluggish finished steel market conditions — led to cautious procurement. As a result, mills refrained from purchasing scrap in large volumes, contributing to continued softness in scrap prices.
Raw material prices
The sponge iron (CDRI) market in Mandi Gobindgarh remained stable for the fourth consecutive day, with prices holding steady at INR 30,000/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana have also maintained a steady trend over the past five days, trading at INR 35,500/t DAP.
Steel market trends
Semi-finished steel (ingot) prices in Mandi Gobindgarh slipped by INR 200/t d-o-d to INR 38,800/t DAP, pressured by sluggish demand and tightening conversion margins. Across key production hubs, ingot prices softened further, by INR 50-400/t d-o-d.
Rebar (Fe500) prices in Mandi eased by INR 200/t d-o-d to INR 43,700/t ex-works, while HR strip (patra) tags fell by INR 100/t to INR 40,900/t ex-works Mandi. Finished steel prices in the region have dropped by INR 1,800/t over the past 13 days.
Alang scrap market
On 3 September 2025, ship-breaking scrap prices at Gujarat’s Alang market declined by INR 200/t d-o-d. According to BigMint’s assessment, HMS (80:20) stood at INR 31,100/t ex-yard. Semi-finished steel prices in the region fell INR 300-400/t due to limited market activity. Meanwhile, average scrap consumption by Bhavnagar IF mills compelled sellers to reduce their offers.
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 $332-$333/t, which equates to approximately INR 31,552/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 $364/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 13,200/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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