- Sponge iron prices rise by INR 100/t
- Semis, finished steel prices surge by INR 300-350/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/tonne (t) d-o-d to INR 36,900/t DAP on 19 March 2025.The market saw average activity in scrap, as mills focused more on selling their finished material rather than purchasing raw material at higher prices. Trading activity in the market was slow today, with price increases observed but demand for steel remained limited.
Mandi update: Safeguard duty impact and market outlook
The market is currently facing significant confusion regarding the safeguard duty recommended by DGTR, with some mills setting prices at the higher end, while others maintaining a more stable, range-bound approach. Rumor’s circulating within the market are creating unnecessary pressure.
At present, mills are struggling to make sales at current price levels, with demand remaining weak across the region. In the near term, there is an expectation of a price increase of around INR 300-INR 500/t in the Mandi market. However, the market is also under considerable liquidity pressure, which is adding to the overall strain.
A mill owner informed “In the near term, Mandi steel ingot prices will remain within the INR 42,500-43,000/t DAP range”.
In addition, the local electricity board is set to withdraw the INR 1 kVAh rebate that was previously provided for night shifts. This change is expected to further impact operating costs for mills, potentially increasing the financial pressure they are already facing.(There is still no clarity on this, however, and it may be applicable from April or May).
Raw material prices
Sponge iron (CDRI) prices in Mandi increased by INR 100/t to INR 31,300/t DAP, while steel-grade pig iron in Ludhiana improved by INR 300/t to INR 39,100/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh increased by INR 350/t to INR 42,700/t DAP. Meanwhile, semi-finished steel prices in other key markets increased by INR 250-700/t.
Rebar (Fe 500) prices in Mandi Gobindgarh jumped by INR 300/t to INR 47,300/t exw. Despite the price increase, there has been no significant improvement in trade activity, as confirmed by the mills.
Overview of Alang market
Prices for ship-breaking scrap in Alang, Gujarat, increased by INR 200/t on 19 March. The cost of HMS (80:20) reached INR 33,800/t ex-yard. While semi-finished steel prices stayed stable in the last session, good deal momentum and a surge in scrap demand led sellers to lift their offers.
Auction update
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,900/t.
Domestic vs. imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-360/t, which equates to approximately INR 33,277/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 400/t to INR 32,800/t DAP. Indicative prices of shredded from Europe stood at $380-385/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 15,250/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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