- Sponge iron prices remain stable d-o-d
- Semis, finished tags drop by INR 200-300/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 100/tonne (t) d-o-d to INR 36,800/t DAP on 26 May 2025. Scrap prices in the Mandi region recorded a marginal decline of INR 100-200/t, supported by need-based procurement amid overall sluggish market activity. The weakness in steel demand continues to weigh on buying interest. Despite this, a regional shortage of scrap has allowed suppliers to keep their offers firm, and display limited willingness to lower these further.
On the other hand, semi-finished and finished steel prices saw a correction of INR 200/t, reflecting continued softness in trade and lacklustre demand. Market participants widely anticipate that current price levels may be approaching a bottom, with minimal downside expected from here.
Looking forward, industry players are pinning hopes on a revival in pre-monsoon demand, which could offer some much-needed support and momentum to the market.
Substitute raw material prices
Sponge iron (CDRI) prices in Mandi remained firm d-o-d at INR 30,200/t DAP. Similarly, steel-grade pig iron prices in Ludhiana increased by INR 200/t to INR 36,400/t DAP.
Steel market trends
In Mandi Gobindgarh, steel ingot prices moved down by INR 200/t d-o-d to INR 42,100/t DAP. Semi-finished steel prices in other major markets declined by INR 100-400/t.
Rebar prices in Mandi declined by INR 300/t to INR 47,200/t exw. HR strip (patra) prices fell by INR 100/t to INR 44,000/t exw.
Overview of Alang market
Melting scrap prices in Gujarat’s Alang ship-breaking market declined by INR 200/t d-o-d on 26 May 2025. As per BigMint’s latest assessment, HMS (80:20) was quoted at INR 33,500/t ex-yard. The price correction is primarily driven by subdued demand in both semi-finished and finished steel segments during the previous trading session. Combined with moderate scrap trading volumes, the soft sentiment prompted suppliers to lower their offers to align with market conditions.
Major auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,300-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 31,992/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 200/t to INR 33,000/t DAP. Indicative prices of shredded from Europe stood at $365-$370/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 15,750/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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