- Sponge iron prices dip by INR 300/t d-o-d
- Semis, finished steel prices drop INR 200/t-300/t d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 36,700/t DAP on 7 May, 2025. Major steel markets remained largely inactive, with limited trade activity amid ongoing geopolitical tensions at the border and cautious buying behaviour. Market uncertainty and confusion continue to prevail, leading to increased liquidity pressure and hesitation among buyers.
Raw material prices
Sponge iron (CDRI) prices in Mandi slipped INR 300/t d-o-d, reaching INR 30,400/t DAP. In Ludhiana, steel-grade pig iron also saw a dip, falling by INR 200/t to INR 36,400/t DAP. The continued weakness in steel demand pressured suppliers to reduce their offers across markets.
Steel market trends
Steel ingot prices in Mandi Gobindgarh dropped by INR 200/t to INR 42,400/t DAP. The most significant price declines were observed in the Hyderabad and Goa markets, with a sharp d-o-d drop of around INR 500/t.
Rebar prices in Mandi declined by INR 300/t, settling at INR 47,300/t, as subdued buying interest continued to drag down market sentiment. Despite the ongoing weakness, rebar manufacturers remain optimistic, viewing the current price level as the bottom range and anticipating a market rebound in the near term.
Overview of Hyderabad market
The Hyderabad steel market witnessed a slowdown, marked by a decline in prices. Semi-finished steel (billets) fell by INR 500/t to INR 45,500/t, while finished steel (rebar) dropped by INR 200/t to INR 45,300/t d-o-d. Market sentiment stayed weak throughout the week, with buyer activity remaining sluggish in the region.
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 $345-350/t, which equates to approximately INR 31,851/t (including freight). Local HMS (80:20) prices in Mumbai remained steady at INR 33,000/t DAP. Indicative prices of shredded from Europe stood at $368/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 15,900/t.
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To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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