India: BigMint’s scrap index declines by INR 200/t in muted steel market

• Semis, finished prices drops by INR 100-200/t
• Major scrap auction sees dip of INR 300/t m-o-m

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined slightly by INR 200/tonne (t) d-o-d to INR 36,600/t DAP on 12 February, 2025. Mills are procuring scrap only on need basis, as the steel market is currently in a pause.

The overall Mandi steel market saw weak trade activity, though demand for semi-finished and finished steel remained slower compared to yesterday’s trading session. Mandi steel makers are focusing on procuring domestic scrap, as imported is not currently viable. There is good availability of domestic scrap in the region. According to steel makers, near-term Mandi ingot prices are expected to remain range-bound at INR 42,200-42,800/t.

Raw material price updates

Prices of sponge iron (CDRI) in Mandi fell by INR 200/t d-o-d to INR 30,300/t DAP. Meanwhile, prices of steel-grade pig iron in Ludhiana remained steady at INR 35,800/t DAP.

Steel market overview

Today, steel ingot prices in Mandi Gobindgarh dipped by INR 200/t to INR 42,400/t DAP, while semi-finished tags in major markets saw a decline of INR 100-400/t d-o-d.

Rebar (Fe 500) prices in the region dropped by INR 100/t to INR 47,100/t exw. Additionally, demand remains slow.

Overview of Alang market

Ship-breaking melting scrap prices in Alang, Gujarat, decreased by INR 200/t on 12 February. HMS (80:20) was priced at INR 33,000/t exy, according to BigMint. The reduction is a result of falling semi-finished steel prices and subdued trade, prompting scrap suppliers to lower their offers.

Major auction result

On 11 February, a northern India-based auto major auctioned 3,380 t of CR Busheling scrap at INR 36,350-36,550/t exw, down INR 300-400/t from the 14 January auction.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,500-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 33,036/t (including freight). Local HMS (80:20) prices in Mumbai remained stable at INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $375-$380/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 14,300/t.

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