India: BigMint’s ferrous scrap index drops INR 100/t as steel demand softens

• Raw material prices remain stable d-o-d
• Semi-finished steel prices dip INR 100/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 34,900/t DAP on 18 December 2025.

The steel market remained largely inactive throughout the day as buyers continued to adopt a wait-and-watch approach. Finished steel demand stayed weak, while persistent pressure on conversion margins kept market sentiment subdued. In response, several mid-scale mills in the region have curtailed production by nearly 30-40%. With limited inquiries from semi-finished and finished steel segments, scrap suppliers also lowered their offers in today’s session to align with the slow market trend.

Alternative raw material prices

The sponge iron (CDRI) market in Mandi Gobindgarh showed stability, with prices assessed unchanged at INR 28,300/t DAP. Likewise, steel-grade pig iron in Ludhiana remained stable at INR 35,000/t DAP.

Steel market

Semi-finished steel (ingot) prices in Mandi Gobindgarh fell by INR 100/t d-o-d to INR 39,900/t DAP. Similarly, ingot prices across major production hubs registered a drop of INR 100-300/t during today’s trading session.

Meanwhile, rebar (Fe500) prices in Mandi remained stable d-o-d assessed at INR 44,500/t ex-works on rising input costs, though demand was subdued. HR strip (patra) prices dipped by INR 100/t to INR 40,200/t ex-works.

Overview of Alang market

The Alang (Gujarat) ship-breaking market witnessed a mild price correction of INR 200/t d-o-d on 18 December, with HMS (80:20) assessed at INR 30,800/t ex-yard. Sluggish demand in semi-finished and finished steel segments and moderate consumer participation prompted sellers to trim offers.

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 4,700-5,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $320/t, approximately INR 31,186/t (inclusive of freight). HMS (80:20) in Mumbai rose by INR 200/t d-o-d at INR 30,700/t DAP. Indicative prices of shredded from Europe stood at $348/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 14,250/t.

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