- Sponge iron prices dip by INR 100/t
- Semi-finished prices down by INR 200/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, slid down by INR 200/tonne (t) d-o-d to INR 36,600/t DAP on 6 March 2025. The steel market in Mandi saw a lull following a INR 300/t price hike during yesterday’s final trading session. Today, buyers have adopted a cautious stance, while sellers have lowered their offers for semi-finished steel. Steel buyers remain skeptical about the price increase, viewing it as artificial, as ingot prices in the region have remained stable within the INR 42,200-INR 42,800/t range in the near term.
Raw material price updates
Prices of sponge iron (CDRI) in Mandi fell by INR 100/t d-o-d to INR 31,000/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana remained steady d-o-d at INR 37,600/t DAP.
In Mandi, the charge mix of steel manufacturers consists of 80-85% scrap and 15% sponge iron.
Steel market overview
Steel ingot prices in Mandi Gobindgarh decreased by INR 200/t d-o-d to INR 42,500/t DAP during the reporting period. In contrast, semi-finished steel prices in key markets saw a decline of INR 50-550/t.
Rebar (Fe 500) in Mandi Gobindgarh remained steady at INR 47,100/t exw. Meanwhile, the finished steel markets in Bangalore experienced the most significant price hike of INR 400/t today.
Overview of other markets
Prices of IF-grade rebar (Fe 500) in Mumbai remained stable at INR 49,300/t exw. Limited buying activity was seen in the market for finished steel as buyers had previously procured sufficient material and were waiting for further clarity on the market. The current pricing of scrap (HMS 80:20) is INR 32,300/t DAP. The conversion spread between scrap and billets is at around INR 10,700/t.
In the western India-based Jalna market, billet and rebar prices remained stable, assessed at INR 42,300/t and INR 48,600/t, respectively. Meanwhile, HMS 80:20 prices saw a d-o-d increase of INR 200/t, settling at INR 32,200/t. Additionally, there has been a noticeable increase in trade activity in recent days, particularly in the semi-finished and finished steel sectors, pointing to improving market dynamics.
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 33,109/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 100/t to 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 14,950/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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