- Sponge iron prices remain firm w-o-w
- Demand improves for semis, finished steel
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 400/t to INR 33,700/t DAP on 31 October 2025.
On a weekly average basis, scrap prices increased by INR 150-200/t, supported by firm demand amid a prevailing shortage in the market.
With imported scrap prices remaining higher, local steelmakers are preferring domestic scrap for production, as a price gap of around $10/t persists between imported and domestic materials.
According to a mill owner, the ongoing shortage of scrap in Mandi is partly due to strict GST checks at the borders, prompting many suppliers from neighboring states to withhold deliveries.
Raw material
In the raw material segment, sponge iron (CDRI) prices in Mandi Gobindgarh rose by INR 100/t to INR 28,700/t DAP on a weekly basis. Prices remained firm amid moderate buying activity, supported by a prevailing scrap shortage in the region. Meanwhile, steel-grade pig iron prices in Ludhiana also increased by INR 100/t to INR 34,800/t DAP, with prices holding steady on a weekly comparison.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh increased by INR 300/t to INR 38,700/t DAP, while other key production hubs also recorded gains of INR 200-750/t during the day’s trading. In Raigarh, ingot prices registered a sharper rise of INR 750/t. On a weekly basis, ingot prices in Mandi remained largely stable.
Rebar (Fe500) prices in Mandi edged up by INR 100/t to INR 43,000/t ex-works. Weekly prices held steady amid marginal improvement in finished steel demand.
Meanwhile, HR strip (patra) prices in Mandi strengthened by INR 600/t to INR 40,100/t ex-works, as patra manufacturers reported signs of recovery in segmental demand.
Overview of Hyderabad market
Semi-finished steel(billet) prices in Hyderabad increased by INR 500/t to INR 36,500/t ex-works, while finished steel (rebar Fe 500) prices rose by INR 200/t d-o-d to INR 39,200/t ex-works. Similarly, sponge iron prices moved up by INR 200/t to INR 24,400/t ex-works.However, HMS (80:20) scrap prices remained stable at INR 27,000/t during today’s session.
A mill owner informed “Scrap prices in the Hyderabad market remained firm d-o-d, supported by improved sentiment in neighboring regions and stronger demand for both semi-finished and finished steel products. Further price support is anticipated as buyers show greater willingness to book material. However, sellers are expected to maintain a cautious wait-and-watch approach, given the currently adequate demand from buyers.”
Upcoming scrap auctions
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,800-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $322/t, approximately INR 30,768/t (inclusive of freight). HMS (80:20) in Mumbai increased by INR 200/t to INR 30,200/t DAP today. Indicative prices of shredded from Europe stood at $352/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 12,150/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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