- Supply shortages fail to support scrap prices
- Finished steel prices drop by INR 100/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 36,600/t DAP on 27 May 2025.
In Mandi, sluggish trading activity continued to weigh on the steel market, and increased pressure on mills prompted them to reduce prices of both semi-finished and finished products.
Scrap procurement remained largely need-based, driven by weak steel demand. This has also been the key factor behind the recent decline in scrap prices. Additionally, the prevailing scrap shortage in the region failed to support offers.
Raw material prices
Sponge iron (CDRI) prices in Mandi declined by INR 100/t d-o-d to INR 30,100/t, while in Ludhiana, steel-grade pig iron tags fell by INR 400/t to INR 36,000/t DAP.
Steel market trends
In Mandi Gobindgarh, steel ingot prices remained stable d-o-d at INR 42,000/t DAP. In other regions, semi-finished steel prices registered a drop of INR 100-500/t d-o-d.
Rebar prices in Mandi dipped by INR 100/t d-o-d to INR 47,100/t exw. HR strip (patra) prices decreased by INR 100/t to INR 43,900/t exw.
Overview of Jalna market
In Jalna, western India, billet prices declined by INR 200/t d-o-d to INR 41,800/t. Concurrently, prices of rebar and HMS 80:20 also dropped by INR 100/t d-o-d to INR 46,600/t and INR 32,100/t, respectively.
The onset of the monsoon season led to subdued demand for both semi-finished and finished steel products in the region. Over the past few days, rebar prices have witnessed a sharp correction of INR 1,000-1,500/t.
In response to these market conditions and to maintain conversion costs, mills reduced their scrap procurement prices. However, scrap suppliers showed limited interest in offering material at these lower prices, citing unattractive margins.
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Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,300-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,073/t (including freight). Today, local HMS (80:20) prices in Mumbai decreased by INR 500/t d-o-d to INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $365-$370/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 15,600/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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