- Suppliers lift offers in bid to pass on tax burden
- Semis, finished prices improve by INR 100-300/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/tonne (t) to INR 34,200/t DAP on 4 September 2025.
In the wake of the 56th GST Council meeting held yesterday, the expected reduction in Goods and Services Tax (GST) on steel scrap from 18% to 5% did not materialise, contrary to market expectations. This outcome has significantly influenced market dynamics, particularly on the supply side.
Many scrap buyers had been anticipating a GST cut, which would have reduced procurement costs. However, with the GST rate remaining unchanged at 18%, scrap suppliers responded by raising their offers, attempting to pass on the continued tax burden and capitalise on the unchanged regime.
Additionally, semi-finished steel prices witnessed a modest recovery in today’s trading session, further supporting the upward movement in scrap prices. Despite this, the finished steel market continued to face weak demand, limiting overall bullish sentiment and keeping the market uptrend moderate.
Raw materials
The sponge iron (CDRI) market in Mandi Gobindgarh continued its stable run for the fifth straight day, with prices remaining unchanged at INR 30,000/t DAP. In contrast, steel-grade pig iron prices in Ludhiana saw a minor decline of INR 50/t d-o-d to INR 35,450/t DAP.
Steel market trends
Semi-finished steel (ingot) prices in Mandi Gobindgarh rose by INR 300/t d-o-d to INR 39,100/t DAP. A similar upward trend was observed across key production hubs, with prices increasing by INR 100-500/t. Notably, the Ahmedabad market registered the highest gain, with ingot prices rising by INR 500/t in today’s session.
Finished steel prices in Mandi moved up today, with rebar (Fe500) rising by INR 100/t d-o-d to INR 43,800/t, and HR strip (patra) gaining INR 300/t to INR 41,200/t, both ex-works. TMT demand stayed weak, but the patra segment showed signs of improved demand.
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/t, which equates to approximately INR 31,456/t (including freight). HMS (80:20) prices in Mumbai increased by INR 200/t to INR 31,000/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 13,300/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply