India: BigMint’s ferrous scrap index holds firm amid stable market trends

• Alternate raw material prices remain stable
• Semis, finished steel prices stay flat d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, held steady d-o-d at INR 36,700/tonne (t) DAP on 11 March 2025.

In the Mandi steel market, stable trends persist as mills continue to focus on procuring domestic scrap. Although the availability of scrap remains decent, the slow movement in the steel market has led to ongoing liquidity pressure in the region.

Raw material price updates

The price of sponge iron (CDRI) in Mandi remained stable d-o-d at INR 31,100/t DAP, while steel-grade pig iron prices in Ludhiana were at INR 39,000/t DAP.

In Mandi, the charge mix of steel manufacturers consists of 80-85% scrap and 15% sponge iron.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained steady d-o-d at INR 42,500/t DAP. Meanwhile, semi-finished steel prices in key markets saw an decrease of INR 100/t-200/t.

In Mandi Gobindgarh, rebar (Fe 500) prices stayed at INR 47,000/t exw, and the rebar trade activity in the area continued to be quiet.

Overview of other markets

On 11 March, the price of ship-breaking melting scrap in Alang, Gujarat fell by INR 200/t d-o-d, with HMS (80:20) priced at INR 33,500/t ex-yard, as per BigMint’s assessment. The price reduction was a result of lower semi-finished and finished steel prices and moderate scrap trade activity, which led suppliers to adjust their offers accordingly.

Upcoming auction update

Major auction result

Today, a leading north India-based 4-wheeler manufacturer auctioned 4,600 t of CR busheling scrap (low manganese) in Gurgaon, Haryana. The final bids were INR 35,500-35,700/t exw, reflecting a decrease of INR 700-900/t compared to the auction held on 11 February.

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 33,151/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $377/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 14,800/t.

To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.