India: BigMint’s scrap index holds firm; weak demand weighs on finished steel market

• Sponge prices remain stable d-o-d
• Finished steel tags decrease by INR 300/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 34,900/t DAP on 27 August 2025.

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

The sponge iron (CDRI) market in Mandi Gobindgarh continued to show stability, with prices holding firm at INR 30,100/t DAP. Meanwhile, steel grade pig iron prices in Ludhiana registered a d-o-d increase of INR 200/t, reaching INR 35,800/t. The upward movement was supported by moderate booking activity, indicating a slight pickup in buying interest from the local industrial segment.

Steel market trends

The semi-finished steel market in Mandi Gobindgarh showed marginal strength, with prices edging up by INR 100/t to INR 39,800/t DAP. Across major production hubs, steel ingot prices remained largely stable, witnessing only minor day-on-day fluctuations in the range of INR 100-200/t.

In contrast, the finished steel segment continues to face headwinds. Rebar (Fe500) prices in Mandi Gobindgarh fell by INR 300/t, settling at INR 44,500/t ex-works. This marks a total decline of INR 800/t over the past six days, reflecting the sustained pressure on mills due to sluggish buying activity.

Overview of Alang market

The ship-breaking melting scrap market in Alang, Gujarat, remained resilient on 27 August, with HMS (80:20) quoted at INR 31,500/t ex-yard, as per BigMint’s data. Although downstream steel prices softened, moderate buying interest from Bhavnagar-based IF mills kept seller sentiment firm, preventing further price corrections.

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Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,800-5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $333-$335/t, which equates to approximately INR 31,596/t (including freight). HMS (80:20) prices in Mumbai remained stable d-o-d at INR 30,800/t DAP today. Indicative prices of shredded from Europe stood at $365/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 13,650/t.

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