- Sponge iron prices increase by INR 200/t w-o-w
- Semis, finished steel prices up INR 250-450/t w-o-w
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 100/t to INR 34,600/t DAP on 26 September 2025. Scrap prices in the region improved by INR 450-575/t w-o-w, as ongoing GST raids hampered routine workflow.
The steel market in Mandi Gobindgarh continued to face sluggish demand in the finished steel segment this week, even as prices saw a marginal uptick on a weekly basis. The price rise was primarily driven by increases in scrap and semi-finished steel, rather than any significant pickup in end-user demand.
According to market sources, mills in the region have raised prices cautiously amid growing cost pressures, largely due to ongoing GST enforcement checks on scrap suppliers. These strict inspections have disrupted the movement of scrap material, especially from neighbouring states where suppliers have reportedly begun holding back material to avoid compliance hurdles and delays.
This situation has led to a mild shortage of scrap in the region, tightening availability and contributing to upward pressure on input costs. While mill owners are attempting to pass on some of these cost increases, buyer sentiment remains weak, with many adopting a wait-and-watch approach.
Overall, the market is witnessing a supply-side driven firmness, but demand fundamentals remain muted. Industry participants remain cautious, and unless clarity emerges on regulatory enforcement and scrap supply normalizes, market recovery may remain limited in the near term.
Imported scrap offers
The imported scrap market remains under pressure due to a persistent gap between buyer bids and seller offers, driven by softening global sentiments. HMS 1 scrap from Bahrain, Kuwait, and South Africa-offered at around $340/t CFR West Coast India-is facing lower Indian buyer bids in the range of $330-$332/t, leading to a disparity of $8-10/t.
Raw material
The sponge iron (CDRI) market in Mandi Gobindgarh witnessed a minor correction on the day, with prices falling by INR 100/t to close at INR 30,400/t DAP. Despite the dip, prices registered a weekly gain of INR 200/t, supported by earlier firmness in raw material cost.
Meanwhile, steel-grade pig iron prices in Ludhiana remained unchanged at INR 35,000/t DAP. However, on a weekly basis, prices slipped marginally by INR 100/t, indicating a moderately soft market sentiment amid limited buying interest.
Steel market
The semi-finished steel market witnessed a minor correction today, with prices in Mandi Gobindgarh dropping by INR 100/t to settle at INR 39,800/t DAP. Across key production hubs, ingot prices also showed a downward trend, with declines ranging between INR 100-300/t.
Despite the day-on-day dip, weekly data reflects an increase of INR 450/t in ingot prices in Mandi, supported by cost-side pressures, although trade activity remained relatively slow.
In the finished steel segment, the pressure persisted. Rebar (Fe500) prices in Mandi declined by INR 100/t on the day, closing at INR 44,100/t ex-works. However, on a weekly basis, rebar prices were up by INR 250/t, indicating some support from previous market movement despite current demand softness.
Alang scrap market
Ship-breaking melting scrap prices remained unchanged on 26 September in Alang, Gujarat. HMS (80:20) scrap was assessed at INR 31,000/t ex-yard, with no variation day-on-day. A steady trend in both semi-finished and finished steel segments, coupled with moderate trading activity, led suppliers to maintain current offer levels.
Upcoming scrap auctions
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,900-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $330/t, approximately INR 31,471/t (inclusive of freight).HMS (80:20) prices in Mumbai remained stable at INR 31,400/t DAP today, holding steady for the third consecutive day in the region. Indicative prices of shredded scrap from Europe stood at $362/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 12,100/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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