- Sponge iron prices increase by INR 100/t
- Semi-finished tags improve by INR 200/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved marginally by INR 200/tonne (t) d-o-d to INR 36,800/t DAP on 7 March 2025 amid moderate market sentiments. Mills expect the near-term market to remain range-bound, as scrap and semi-finished steel prices showed no major fluctuations. On a w-o-w basis, prices edged up by INR 300/t in the region for both scrap and semi-finished steel.
A mill owner informed BigMint, “Punjab is currently experiencing a slowdown in project-based activities, with no major projects underway in the region, putting pressure on local mills. However, demand from nearby states has been steady and showing positive growth over the past 15 days (especially demand in the patra pipe segment). Mandi steelmakers are optimistic, expecting a shift in demand in the coming months, as some upcoming projects are expected to boost the market, bringing hope for better prospects.”
Raw material price updates
Prices of sponge iron (CDRI) in Mandi improved marginally by INR 100/t d-o-d to INR 31,100/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana increased by INR 150/t d-o-d to INR 37,750/t DAP.
In Mandi, 80-85% of the charge mix of steel manufacturers consisted of scrap and the remaining 15% was constituted by sponge iron.
Steel market overview
Steel ingot prices in Mandi Gobindgarh rose by INR 200/t d-o-d to INR 42,600/t DAP. Meanwhile, semi-finished steel prices in key markets saw an increase of INR 100-250/t.
Rebars (Fe 500) in Mandi Gobindgarh fell by INR 100/t d-o-d to INR 47,000/t exw. Trade activity in rebars remained slow in the region.
Overview of other markets
Durgapur: Overall, the semi-finished market in Durgapur witnessed stable prices, though tags rose in northern India. Other regions also witnessed a hike. Trades were moderate, as buyers remained cautious about bulk booking. Finished steel demand was still on the lower side, which led to price volatility. Billet prices in the region increased by INR 200/t to INR 39,750/t DAP, while rebar (Fe500) prices remained stable at INR 43,800/t exw.
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable on 7 March 2025, with HMS (80:20) at INR 33,700/t ex-yard, according to BigMint. Yesterday, semi-finished and finished steel tags held steady, and moderate trade activity in the scrap market led to stable pricing.
Auction update
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 $350-355/t, which equates to approximately INR 33,089/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $375/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 14,750/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply