- Strict GST checks lead to mild shortage of scrap
- Ingot prices inch up by INR 100/t, rebar holds firm
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, inched up by INR 100/tonne (t) to INR 34,700/t DAP on 25 September 2025.
The Mandi steel market witnessed subdued trading today, with no major trade activity observed across key segments. Market participants remained on the sidelines, reflecting a mood of caution and uncertainty.
A mild shortage of scrap material emerged in the region, largely attributed to intensified GST checks on scrap suppliers. This disruption in supply led to a notable uptick in scrap prices, further contributing to the slowdown in market movement.
Despite the increase in scrap rates, buyers and traders continued to adopt a wait-and-watch approach, wary of the near-term outlook. According to a few mill owners and market experts, Mandi ingot prices are expected to remain range-bound in the coming days, hovering between INR 39,400 and INR 40,000/t.
Raw material price trend
In the raw material segment, sponge iron (CDRI) prices in Mandi Gobindgarh remained unchanged d-o-d at INR 30,500/t DAP. The market saw no significant fluctuations in buying interest or supply.
On the other hand, steel-grade pig iron prices in Ludhiana inched up by INR 50/t to INR 35,000/t DAP.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh witnessed a modest uptick of INR 100/t to INR 39,900/t DAP. Similarly, ingot prices across major production hubs registered a gain of INR 100-200/t during today’s trading session, reflecting slight positive momentum.
Meanwhile, rebar (Fe500) prices in Mandi held steady at INR 44,200/t ex-works, showing no movement despite rising input costs.
Although overall demand remains below moderate, the recent increase in raw material prices has prompted Mandi-based mills to consider upward revisions in finished steel prices in an effort to maintain margins.
Overview of Mumbai steel market
IF-route rebar (Fe 500) prices in Mumbai decreased by INR 300/t d-o-d to INR 43,700/t exw amid weak demand, as buyers restricted bookings to immediate requirements. On the raw material side, HMS (80:20) was assessed at INR 31,400/t DAP, while the scrap-billet conversion spread stood at around INR 7,700/t.
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 4,900-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 31,485/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 31,400/t DAP today. Indicative prices of shredded from Europe stood at $362/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 12,100/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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