- Buyers show caution amid price uncertainty
- Lower ingot prices weigh on scrap offers
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 35,600/t DAP on 2 December.
Mandi Gobindgarh, a key secondary steel hub in India, recorded subdued trading activity today, with only minor price changes. Market trends were mixed, with rebar prices increasing d-o-d, while ingot prices inched down.
Steel buyers adopted a cautious stance, expecting a potential near-term correction, while sellers appeared hesitant, awaiting clearer signals regarding market direction.
Meanwhile, the steel scrap sector showed moderate movement; however, with a slight dip in ingot prices, scrap suppliers modestly reduced their offers. Overall, the market remains in a wait-and-watch mode amid uncertainty about upcoming trends.
Due to a shortage of scrap, mills in Mandi are increasingly focusing on sponge iron and imported scrap, with mild buying activity observed in the imported scrap segment in the region. This shift was driven by supply constraints in domestic scrap.
Alternative raw materials
Sponge iron prices in Mandi Gobindgarh remained stable d-o-d at INR 29,200/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana declined by INR 100/t to INR 34,900/t DAP.
Steel market
Steel ingot prices in Mandi Gobindgarh inched down by INR 100/t d-o-d to INR 40,500/t DAP amid weak demand during the reporting period, though other major production centres saw moderate price increases ranging from INR 100-600/t, with Mumbai recording the highest rise of INR 600/t.
Meanwhile, rebar (Fe 500) prices in Mandi Gobindgarh increased by INR 200/t d-o-d to INR 45,200/t ex-works, supported by improving demand despite ongoing liquidity pressures in the market.
Overview of Alang market
On 2 December 2025, Alang’s ship-breaking scrap prices remained stable, with HMS (80:20) assessed at INR 31,300/t ex-yard, as assessed by BigMint. The increase in steel product prices on Monday did not translate into higher scrap prices, as moderate inquiries from Bhavnagar’s integrated mills prompted suppliers to hold steady.
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 $316-318/t, approximately INR 30,800/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 30,000/t DAP. Indicative prices of shredded from Europe stood at $347/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 12,800/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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