India: BigMint’s ferrous scrap index rises INR 200/t but steel demand remains limited

• Sponge iron prices increase by INR 50-100/t 
• Semis, finished steel prices gain INR 100-200/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose INR 200/t to INR 34,800/t DAP on 23 September 2025.

In Mandi, no significant activity has been recorded over the past three days. Market sources report that any movement observed has been largely short-term and speculative in nature. Ongoing GST inspections are adding to the challenges, disrupting regular trade and causing delays across the supply chain. Additionally, a noticeable shortage of scrap material is putting further pressure on production and pricing dynamics.

Raw material

Sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t day-on-day, closing at INR 30,600/t DAP.
In contrast, steel-grade pig iron prices in Ludhiana saw a marginal rise of INR 50/t, reaching INR 35,000/t DAP.

Steel market trends

Semi-finished steel prices in Mandi Gobindgarh rose by INR 200/t, closing at INR 40,000/t DAP.
In major production centres, ingot prices recorded an increase ranging between INR 100-300/t in today’s session.

Rebar (Fe500) prices in Mandi increased by INR 100/t to INR 44,300/t ex-works.
Overall demand remains below moderate levels, and due to the rise in raw material costs, Mandi-based mills are attempting to increase finished steel prices.

Alang market overview

On 23 September, Alang’s ship-breaking melting scrap market remained stable, with HMS (80:20) prices flat at INR 30,800/t ex-yard, as per BigMint’s assessment. The semi-finished and finished steel segments witnessed average trading activity. Meanwhile, consistent but moderate scrap procurement by Bhavnagar-based IF mills helped keep prices steady.

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Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,900-5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 31,485/t (inclusive of freight).HMS (80:20) prices in Mumbai increased by INR 200/t to INR 31,400/t DAP today.
Indicative prices of shredded scrap 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 12,200/t.