- Sponge iron prices increase by INR 100/t d-o-d
- Semis, finished steel prices holds firm d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained flat d-o-d at INR 34,500/tonne (t) DAP on 1 October 2025.The Mandi Gobindgarh steel market witnessed a quiet session today, with no significant trading activity seen in the finished segment.
Market activity today remained subdued, with trading limited primarily to essential procurement by mills. Despite muted demand, prices held firm, suggesting a stable yet cautious sentiment in the local scrap market.
Raw material
Sponge iron (CDRI) prices in Mandi Gobindgarh edged up by INR 100/t d-o-d, settling at INR 30,300/t DAP. Meanwhile, in Ludhiana, steel-grade pig iron prices saw a modest gain of INR 50/t, reaching INR 35,200/t DAP.
Steel market trends
Semi-finished steel (ingot) prices in Mandi Gobindgarh remained stable at INR 39,700/t DAP, pressured by sluggish demand and tightening conversion margins. Across key production hubs, ingot prices softened further, by INR 100-400/t d-o-d.
Rebar (Fe500) prices in Mandi also remained steady d-o-d at INR 44,100/t ex-works, while HR strip (patra) tags fell by INR 200/t to INR 41,400/t ex-works Mandi.
On a month-on-month (m-o-m) basis, HR strip (patra) prices in Mandi Gobindgarh declined by INR 800/t, while rebar prices registered a sharper fall of INR 1,200/t.
Overview of Kolhapur market
Amid a 30-40% drop in production by Kolhapur-based mills, ferrous scrap prices saw a w-o-w decline of INR 300-700/t. Sellers were compelled to lower prices due to weak demand. Offers for CR-busheling (low Mn) ranged between INR 40,500-40,800/t, while plate cutting scrap (10-50 mm, low S & P) was quoted at INR 36,500-37,000/t, DAP Kolhapur, with a one-month payment term.
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 $328/t, approximately INR 31,298/t (inclusive of freight). HMS (80:20) prices in Mumbai remained stable at INR 30,700/t DAP today. Indicative prices for shredded from Europe stood at $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 12,100/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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