- Soft steel demand prompts need-based scrap buying
- Scrap shortages fail to provide sustained price support
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 36,400/t DAP on 19 June 2025. Trading activity in the Mandi steel market was sluggish, exerting continued pressure on overall sentiment. In response to the weak demand, mills were compelled to lower prices of both semi-finished and finished steel products to stay competitive.
Scrap procurement was mostly need-based, with buyers avoiding bulk purchases amid soft demand for steel. This restrained buying approach has been a key driver behind the recent decline in scrap prices across the region.
Furthermore, despite an ongoing shortage of scrap in the Mandi area, the lack of demand has prevented any meaningful support for scrap offers. Suppliers are finding it difficult to hold prices firm due to limited procurement interest from mills.
Alternative raw materials
Sponge iron (CDRI) prices in Mandi Gobindgarh declined by INR 200/t d-o-d to INR 29,000/t DAP. In Ludhiana, steel-grade pig iron prices remained unchanged d-o-d at INR 36,000/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh dropped by INR 200/t d-o-d to INR 41,400/t DAP. The decline is attributed to weak market sentiment and persistently low trading volumes, reflecting cautious buyer behaviour. Across other major steel-producing regions, semi-finished steel prices recorded a marginal drop of INR 150-400/t. Ingot prices in Muzaffarnagar and Ahmedabad recorded the steepest d-o-d decline of INR 400/t.
Rebar prices in Mandi slipped by INR 100/t d-o-d to INR 46,500/t exw. Despite the price dip, the market continued to witness muted buying, with end-users largely adopting a wait-and-watch approach.
Overview of Alang market
According to BigMint, Alang’s ship-breaking melting scrap market saw an INR 100/t dip in prices on 19 June 2025. HMS (80:20) was priced at INR 32,400/t ex-yard. A decline in steel sector activity led to cautious scrap procurement, prompting sellers to revise prices downward.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,200-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $340-345/t, which equates to approximately INR 32,128/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 200/t d-o-d to INR 30,500/t DAP. Indicative prices of shredded from Europe stood at $360-365/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 14,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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