- Sponge iron prices remain steady d-o-d
- Semis, finished steel prices dip INR 200-700/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 37,000/t DAP on 13 May 2025, as the market remained silent in both halves of the trading session.
A mill owner informed: “Today’s trading session saw a slight price correction amid sluggish market activity, as buyers remained on the sidelines, anticipating further price drops. However, mill owners held firm at their offers, restricting the price range. Sellers were seen quoting ingot and billet prices no lower than INR 42,500/t in Mandi, indicating resistance to deeper discounts despite muted demand.”
Another steel mill source informed: “The domestic steel scrap market witnessed slow but steady buying activity, with no aggressive interest from buyers. The imported scrap segment also remained quiet, as buyers continued to stay quiet. Meanwhile, a slight shortage of domestic scrap was reported, which could create mild supply pressure in the short term.”
Substitute raw material prices
Sponge iron (CDRI) prices in Mandi held steady d-o-d at INR 30,600/t DAP. In contrast, steel-grade pig iron prices in Ludhiana edged up by INR 100/t, reaching INR 36,700/t DAP, reflecting marginal improvement in buying interest.
Steel market trends
In Mandi Gobindgarh, steel ingot prices decreased by INR 200/t d-o-d to INR 42,500/t DAP. Meanwhile, semi-finished steel prices across major trading hubs dipped by INR 100-600/t d-o-d, as the market remained silent today.
On the other hand, rebar (Fe 500) prices in Mandi fell by INR 100/t d-o-d to INR 47,700/t exw. Similarly, HR strip (patra) prices in the region fell by INR 700/t d-o-d to INR 43,800/t exw.
The finished steel sector continues to remain subdued with mill owners expecting prices to remain rangebound in the near term. However, the market is currently feeling the weight of uncertainty in the near term.
Overview of Alang market
HMS (80:20) scrap prices in Alang stood firm at INR 33,700/t ex-yard on 13 May, marking two consecutive days of stability. As per BigMint, moderate steel trading and steady scrap demand supported supplier confidence in holding on to current price levels.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,800/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,072/t (including freight). Local HMS (80:20) prices in Mumbai remained steady at INR 33,000/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 15,700/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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