- Sponge iron prices slide INR 100/t
- Semis, finished tags dip INR 100/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, slid by INR 100/tonne (t) d-o-d to INR 36,500/t DAP on 28 February 2025. Today, the trading session in Mandi was relatively quiet initially, leading to a marginal price drop of about INR 100/t in the semi-finished market. However, in the latter half, buying activity picked up, and trading in Mandi improved to a moderate level.
Raw material price updates
Prices of sponge iron (CDRI) in Mandi fell by INR 100/t d-o-d to INR 30,900/t DAP. Meanwhile, steel-grade pig iron tags in Ludhiana rose by INR 50/t d-o-d to INR 37,000/t DAP.
In Mandi, steel manufacturers have been using scrap for 80-85% of their charge mix and sponge iron for the remaining 15%.
Steel market overview
Steel ingot prices in Mandi Gobindgarh dropped by INR 100/t d-o-d to INR 42,400/t DAP during the reporting period. Similarly, prices of semi-finished steel in major markets experienced a d-o-d decrease of INR 100-200/t.
Rebar (Fe 500) prices in Mandi Gobindgarh fell by INR 100/t d-o-d to INR 47,100/t exw. The steepest drop occurred in Raigarh, Chhattisgarh, where prices decreased by INR 700/t d-o-d to INR 43,400/t.
Overview of other markets
Prices of IF-route rebars (Fe 500) in Mumbai increased marginally by INR 100/t d-o-d to INR 49,100/t exw. Moderate buying was seen in the market for finished steel. Prices of HMS (80:20) stood at INR 32,800/t DAP. The conversion spread between scrap and billets was at around INR 10,200/t.
In Alang, Gujarat, ship-breaking scrap prices remained unchanged d-o-d on 28 February 2025, as per BigMint’s assessment. HMS (80:20) was priced at INR 33,200/t ex-yard. Moderate trading was observed for both semi-finished and finished steel, and stable buying interest for scrap led to suppliers keeping prices firm d-o-d.
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 33,220/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable d-o-d at 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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