- Sponge iron prices rise by INR 200/t
- Finished steel prices up INR 100/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, held steady d-o-d at INR 36,600/tonne (t) DAP on 27 February 2025. The mandi steel market today observed a stable trend, with no significant fluctuations.
A Mandi mill owner informed “The market is very range-bound, with demand remaining moderate. Mandi mills are continuing their routine work. Ingot-billet prices are currently at 42,500/t, and in the near term, they are expected to stay between 42,000 and 43,000/t. Scrap availability is good for those whose payment is under 7-15 days”.
A mill owner in Ludhiana said, “Although demand is weak today, most mills in the region are operating at 90-100% production capacity. Compared to last month, the demand for finished steel has seen a slight improvement As for CR busheling, offers from Europe are at $380-383/t CFR west coast India, while domestic offers are ranging between INR 36,000-36,200/t DAP”.
Raw material price updates
The price of sponge iron (CDRI) in Mandi rose by INR 200/t day-on-day to INR 31,000/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana fell by INR 550/t to INR 36,950/t DAP.
In Mandi, steel manufacturers are using 80-85% scrap and the remaining 15% sponge iron in their charge mix for steelmaking.
Steel market overview
Steel ingot prices in Mandi Gobindgarh remained steady at INR 42,500/t DAP during the reporting period. Likewise, semi-finished steel prices in major markets saw a day-on-day rise of INR 100/t-300/t.
Rebar (Fe 500) prices in Mandi Gobindgarh rose by INR 100/t to INR 47,200/t ex-works, supported by moderate demand and stable buying trends.In the rebar (Fe500) market, the most significant increase was observed in the Hyderabad region, where prices rose by INR 1,000/t to INR 46,000/t d-o-d.
Overview of Alang market
On 27 February, 2025, ship-breaking melting scrap prices in Gujarat’s Alang market increased by INR 200/t day-on-day, according to BigMint’s assessment. HMS (80:20) prices were at INR 33,200/t ex-yards. The rise in inquiries for both semi-finished and finished steel led to higher demand for scrap. In response to this increased buying interest, scrap suppliers adjusted their pricing accordingly.
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 $350-$355/t, which equates to approximately INR 33,146/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 100/t to INR 32,800/t DAP. Indicative prices of shredded from Europe stood at $375/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 15,000/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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