- Finished steel prices dip INR 200/t d-o-d
- Mills balance purchases amid softening steel demand
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/tonne (t) d-o-d to INR 36,500/t DAP on 13 June 2025. Mild scrap shortage and ongoing GST checks were seen in the market today, prompting scrap suppliers to raise their offers.
In today’s trading session, market activity remained muted with limited inquiries from buyers. Despite a slight shortage of scrap, subdued demand for both semi-finished and finished steel kept purchase volumes restricted to moderate or strictly need-based levels. Additionally, with the ongoing scrap shortage and a noticeable gap between bids and offers, mills in the Mandi market increased their procurement of sponge iron to support production.
Mills adjust charge mix amid scrap shortage
In response to the ongoing scrap shortage, many mills are strategically adjusting their charge mix. Presently, they are opting for a blend of 65-70% scrap and 30-35% DRI (Direct Reduced Iron) to maintain operational efficiency and cost-effectiveness. Current CDRI prices in Mandi are INR 29,100/t while offers for PDRI are around INR 25,500/t.
Earlier, Mandi-based mills predominantly preferred CDRI (iron ore lump-based DRI) for their sponge iron needs. However, recent updates from several major mill sources indicate a growing preference for PDRI (pellet-based DRI) due to cost advantages. Previously, the gap between CDRI and PDRI was minimal or nearly in line, but now it has widened significantly.
Steel market trends
Steel ingot prices in Mandi Gobindgarh rose by INR 100/t d-o-d to INR 41,600/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 50-200/t d-o-d.
Rebar (Fe 500) prices in Mandi declined by INR 200/t, settling at INR 46,600/t ex-works.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,100-5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $340-345/t, which equates to approximately INR 31,900/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 300/t to INR 31,200/t DAP.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 15,050/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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