- Sponge iron prices dip by INR 300/t
- Semis’, finished tags remain flat d-o-d
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 36,600/t DAP on 28 May, 2025.
Today’s scrap market activity was subdued, driven by limited procurement tied to immediate needs. With dull demand in both semi-finished and finished steel, buyer interest stayed low. Still, a slight shortage in certain scrap grades allowed some suppliers to hold firm on pricing.
Raw material prices
Sponge iron prices in Mandi fell by INR 300/t to INR 29,800/t, reflecting weakened demand. In Ludhiana, steel-grade pig iron saw a minor dip of INR 50/t to INR 35,950/t DAP. Meanwhile, mills in Mandi are using a charge mix comprising 80% scrap and 20% sponge iron for steelmaking.
Steel market trends
Steel ingot prices in Mandi Gobindgarh remained flat at INR 42,000/t DAP, indicating stable demand. In contrast, semi-finished steel prices in other regions saw a modest rise of INR 100/t, suggesting range-bound market sentiments.
Rebar prices in Mandi held steady d-o-d at INR 47,100/t ex-works. HR strip (patra) prices also remained unchanged at INR 43,900/t ex-works.
Overview of others market
Rebar (Fe 500) prices on the Mumbai induction furnace (IF) route remained steady at INR 46,900/t exw. Market activity was subdued, with buyers limiting purchases to immediate requirements. Moreover, continuous rainfall in the region further dampened market sentiment. Scrap (HMS 80:20) is currently priced at INR 32,500/t DAP, while the conversion spread between scrap and billet stands at approximately INR 9,300/t.
Alang’s ship-breaking scrap market witnessed a dip of INR 300/t on 28 May, with HMS (80:20) now priced at INR 33,000/t ex-yard, as per BigMint. The region also saw a drop of INR 400-500/t in semi-finished steel prices, driven by muted trading. As market activity slows, scrap suppliers are adjusting offers downward to match limited demand.
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Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,300-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,075/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $365-$370/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 15,450/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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