India: BigMint’s scrap index drops to 3-week low amid soft market sentiment

• Mills mulling production cuts amid high finished inventories
• Semis, finished steel prices decrease by INR 200/t d-o-d

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/t d-o-d to INR 33,800/t DAP on 8 October 2025. Scrap prices reached a three-week low, last seen on 18 September 2025.

A mill owner informed BigMint, “Finished steel inventories have piled up in yards, creating significant pressure on steelmakers to reduce stock. With prices steadily declining over the past few months in the secondary steel market and conversion margins becoming increasingly tight, cutting down production appears to be the best option in the current market scenario.”

Weak demand for finished steel and liquidity constraints dampened market sentiment, leading to a contraction in activity. Buyers expect further declines in steel prices in the near term.

Alternate raw material prices

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t d-o-d to INR 29,500/t DAP. Steel-grade pig iron prices in Ludhiana declined by INR 100/t to INR 34,700/t DAP.

Steel market trends

Semi-finished steel (ingot) prices in Mandi Gobindgarh dipped by INR 200/t d-o-d to INR 39,000/t DAP, pressured by sluggish demand and tightening conversion margins. Across key production hubs, ingot prices softened further, by INR 100-300/t d-o-d.

Rebar (Fe500) prices in Mandi decreased by INR 200/t d-o-d to INR 43,500/t ex-works. HR strip prices declined by INR 200/t to INR 40,700/t ex-works.

Overview of Alang scrap market

On 8 October 2025, ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged compared to the previous day. BigMint assessed HMS (80:20) prices at INR 30,300/t ex-yard. Although semi-finished and finished steel prices fell in yesterday’s trades, steady inquiries from Bhavnagar IF steel mills helped suppliers keep scrap offers firm.

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 $325-328/t, approximately INR 31,220/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable at INR 30,400/t DAP today. Indicative prices of shredded from Europe stood at $355-358/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 12,200/t.

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