- Raw material prices remain flat d-o-d
- Semi-finished tags drop by INR 150/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 100/tonne (t) d-o-d to INR 35,700/t DAP on 7 July, 2025. The market witnessed subdued trade in both the scrap and finished steel segments, prompting suppliers to face downward price pressures. With minimal buying interest, sellers were left with little choice but to soften their offers in an effort to stimulate demand.
A mill owner informed “Due to stringent GST checks, a shortage of scrap has been observed in the market. At the same time, demand for finished steel remains weak. As a result, mills have increased their procurement of sponge iron to compensate for the scrap shortage. Meanwhile, a gradual rise in the import of scrap is also being seen in Mandi. However, finished steel buyers are still anticipating further price drops in the near term.”
Raw material prices
Prices of sponge iron (CDRI) in Mandi Gobindgarh held firm at INR 28,800/t DAP, showing no change d-o-d. Similarly, steel-grade pig iron prices in Ludhiana remained stable at INR 35,300/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh dropped by INR 150/t d-o-d, settling at INR 40,700/t (DAP) in the latest assessment. The price correction aligns with a broader softening trend in semi-finished steel across other regions, where prices fell in the range of INR 100-300/t, reflecting slower trade momentum and subdued demand.
Meanwhile, rebar prices in Mandi Gobindgarh remained unchanged at INR 45,500/t ex-works.
Overview of Alang scrap market
The ship-breaking scrap market in Alang, Gujarat, held firm on 7 July 2025, with prices of HMS (80:20) assessed at INR 31,500/t ex-yard, according to BigMint.
Market activity remained balanced, with semi-finished and finished steel seeing moderate trade. Despite a generally quiet session, Bhavnagar-based IF mills continued to place steady inquiries for melting scrap. This tempered but consistent buying interest prompted suppliers to keep offers flat, signalling cautious confidence in the near-term market outlook.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,000-5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $330-335/t, which equates to approximately INR 30,980/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 30,700/t DAP. Indicative prices of shredded from Europe stood at $360/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 14,050/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply