- Slight scrap shortage pushes mills to raise bids
- Prices increase across steel production chain
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 300/tonne (t) d-o-d to INR 34,400/t DAP on 13 November 2025.
Steel demand in Mandi Gobindgarh was healthy today, with active participation observed in the morning and afternoon trading sessions. Market sentiment showed improvement compared to yesterday evening, as buyers displayed confidence at prevailing prices.
A slight shortage of ferrous scrap continued to persist in the market, prompting local mills to raise bids to secure material. However, a notable bid-offer disparity was still visible, reflecting cautious buying behaviour amid recent volatility. Overall, the near-term outlook remains moderately positive, supported by improved market activity and steady procurement from end-users.
Mills in the northern region avoided imported scrap purchases due to non-viable pricing. As a result, domestic steel scrap demand surged, supported by higher sponge iron production across India. Local scrap suppliers took advantage of this situation by increasing their offers. However, higher steelmaking conversion costs remained a major concern for mills in Punjab.
Alternative raw material prices
In the steelmaking raw materials segment, sponge iron (CDRI) prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 28,700/t DAP, while steel-grade pig iron tags decreased by INR 200/t to INR 34,600/t DAP.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh surged by INR 400/t d-o-d to INR 39,200/t DAP, with other key production hubs witnessing price increases within the range of INR 200-600/t in today’s trading.
Rebar (Fe500) prices in Mandi moved up by INR 100/t d-o-d to INR 43,600/t ex-works. Meanwhile, HR strip (patra) prices increased by INR 500/t to INR 40,500/t ex-works. Patra demand was strong, with active buying observed across major markets.
Overview of Hyderabad market
In Hyderabad, finished steel demand, particularly for rebar, showed notable improvement compared to the previous week. This uptick in demand supported billet prices, which registered a modest increase. Additionally, several merchant suppliers chose to hold back their fresh offers, expecting a further price hike in the near term. The sentiment in the local market remained positive, supported by consistent inquiries from end-users and improved offtake from construction and infrastructure sectors.
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 4,700-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $320/t, approximately INR 30,587/t (inclusive of freight). HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 29,700/t DAP. Indicative prices of shredded from Europe stood at $350/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 11,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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