India: BigMint’s ferrous scrap index slides for third consecutive day

• Sponge iron prices dip by INR 200/t d-o-d
• Semis, finished steel prices down INR 200-300/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 34,300/t DAP on 11 September 2025.

The steel hub of north India, Mandi Gobindgarh, witnessed a rare quiet day as stringent GST enforcement measures unnerved traders and mills alike. Both morning and afternoon trading sessions remained largely inactive, with only sporadic deals in semi-finished and finished steel. Buying interest in scrap was limited to immediate demand, signalling a cautious market environment.

Scrap prices continued to trade on a demand-driven basis, with buyers taking a conservative approach to fresh purchases. Limited scrap lifting was noted, largely restricted to operational requirements without any speculative buying.

Steel scrap prices have been on a steady decline over the past three days, with prices falling by approximately INR 400-INR 500/t in the region, according to BigMint’s analysis.

Raw material

The sponge iron (CDRI) market in Mandi Gobindgarh saw a decline of INR 200/t, with prices settling at INR 30,300/t DAP. Meanwhile, in Ludhiana, steel-grade pig iron prices remained unchanged for the second consecutive day, assessed at INR 35,400/t DAP.

Steel market trends

In Mandi Gobindgarh, semi‑finished steel (ingot) prices slipped by INR 200 t d-o-d to INR 39,500/t DAP, reflecting reduced transactions and softening demand. In other major production centers, ingot prices similarly declined-dropping between INR 200 and INR 800/t compared to the previous day.

Rebar (Fe500) prices in Mandi Gobindgarh fell by INR 200/t to INR 44,200/t exw with minimal trade activity today same as HR strip(patra) prices also moved down by INR 300/t to INR 42200/t exw. Over the past three working days, patra prices declined by INR 600/t, driven by muted market sentiment and subdued demand.

Overview of Mumbai market

Rebar (Fe 500) prices on the Mumbai IF route held steady at INR 44,100/t exw amid weak demand, as buyers restricted bookings to immediate requirements. On the raw material side, HMS (80:20) scrap was assessed at INR 31,300/t DAP, while the scrap–billet conversion spread stood at around INR 8,100/t.

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Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,900-5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $331/t, which equates to approximately INR 31,472/t (including freight). HMS (80:20) prices in Mumbai remained stable at INR 31,300/t DAP today. Indicative prices of shredded from Europe stood at $363/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 13,000/t.

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