- Sponge iron prices remain flat w-o-w
- Semis, finished steel tags drop by INR 280-310/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/t to INR 34,600/t DAP on 22 September 2025. The steel market in Mandi Gobindgarh opened with a slight price uptick during the morning session, but demand remained largely steady with no major changes in trading activity. Moderate buying interest emerged as suppliers pushed up scrap prices, supported by some easing in GST inspections today.
However, on a weekly basis, scrap prices declined by INR 300-350/t, pressured by weak demand. GST inspections have led to many mills avoiding largescale scrap purchases, resulting in subdued procurement volumes. Additionally, overall finished steel demand remained soft, exerting downward pressure on prices across the scrap-to-finished steel segment.
Despite the current demand pressure, most steel producers in the region remain optimistic that ingot prices will stay stable in the short term. The expected range is between INR 39,500 to INR 40,000/t. This outlook is supported by ongoing supply-side constraints, which are likely to keep downward price movements in check.
Imported scrap offers
The imported scrap market is currently witnessing a clear bid-offer mismatch, as softening global sentiment continues to weigh on prices.
Offers for HMS 1 scrap from origins such as Bahrain, Kuwait, and South Africa delivered to the West Coast of India are currently in the range of $340-$342 per tonne CFR. However, Indian buyers are quoting significantly lower bids, around $330 per tonne, resulting in a price gap of $10-12/t.
Raw material
Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t on the day, closing at INR 30,500/t DAP. On a weekly basis, prices remained firm in the region.
In contrast, steel-grade pig iron prices in Ludhiana saw a minor uptick of INR 50/t to INR 34,950/t DAP but recorded a marginal weekly decline of INR 125/t, reflecting moderately soft demand.
Steel market trends
Semi-finished steel prices in Mandi Gobindgarh rose by INR 300/t, closing at INR 39,800/t DAP. In major production centres, ingot prices showed mixed movement, with increases ranging from INR 100-300/t in some regions, while others saw declines of INR 100-200/t. On a weekly basis, steel ingot prices in Mandi declined by INR 310/t amid slow trade activity.
The finished steel segment continued to face pressure. Rebar (Fe500) prices in Mandi increased by INR 100/t to INR 44,200/t ex-works but fell INR 283/t w-o-w, Mills attribute the ongoing weakness to subdued infrastructure demand, GST inspections, and sluggish construction activity.
Overview of Jalna market
In western India’s Jalna market, rebar and HMS 80:20 prices remained stable at INR 44,000/t and INR 30,800/t, respectively, while billet prices slipped by INR 200/t to INR 38,900/t. Trade in finished steel was sluggish, and mills attempted to lower their bid or purchase price for scrap. However, limited scrap availability at lower offers restricted further downward revisions in purchase prices.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,900-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $330-$332/t, which equates to approximately INR 31,506/t (including freight). HMS (80:20) prices in Mumbai remained stable at INR 31,200/t DAP today. Indicative prices of shredded from Europe stood at $360-$362/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 12,350/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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