- Sponge iron prices stay unchanged d-o-d
- Ingot tags rise INR 100/t, rebar holds firm
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 100/tonne (t) d-o-d to INR 37,100/t DAP on 21 May 2025. A shortage of scrap was observed in the market, amid moderate trading sentiment.
Scrap prices in Mandi increased by INR 100-300/t today, driven by a slight shortage in local supply. Meanwhile, interest in imported scrap remained muted, with very low volumes procured. This limited availability is starting to create upward pressure on raw material costs, which could push semi-finished and finished steel prices higher in the near term.
In the finished steel segment, moderate trade activity was observed, though no major deals were noted. While buying interest picked up today following a brief pause, overall, market participants remained cautious. The key question now is how long current prices can hold, given the ongoing supply tightness and subdued demand environment.
Alternative raw material prices
Sponge iron (CDRI) prices in Mandi remained steady d-o-d at INR 30,400/t DAP. Similarly, steel-grade pig iron prices in Ludhiana rose by INR 100/t to INR 36,000/t DAP.
Steel market trends
In Mandi Gobindgarh, steel ingot prices improved by INR 100/t d-o-d to INR 42,600/t DAP. Meanwhile, semi-finished steel prices across major trading hubs climbed higher by INR 100-400/t d-o-d, supported by steady buying interest.
On the other hand, rebar (Fe 500) prices in Mandi remained stable d-o-d at INR 47,600/t exw. Similarly, HR strip (patra) prices in the region jumped by INR 200/t d-o-d to INR 44,500/t exw. In the finished steel market, trade activity remained moderate to below moderate, reflecting cautious buyer sentiment amid the price rise.
Overview of Mumbai market
Prices of rebars (Fe 500) on the Mumbai IF route remained stable at INR 47,800/t exw. Moderate buying activity was seen in the market for finished steel, as buyers procured material as per their needs only. HMS 80:20 prices stood at INR 32,700/t DAP. The conversion spread between scrap and billets was around INR 10,200/t.
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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 32,137/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 200/t to INR 32,700/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 15,650/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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