- Limited scrap availability boosts prices
- But cautious buying sentiment persists
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/tonne (t) d-o-d to INR 36,000/t DAP on 26 June 2025. Scrap prices in the region improved by INR 100-200/t today.
A mill owner informed BigMint, “Scrap availability remains tight in the Mandi Gobindgarh market, continuing to put pressure on raw material supply. On the previous trading day, ingot prices touched INR 41,100/t, which led to moderate booking activity, with scrap sellers increasing offers by over INR 100/t. In today’s market, the first half remained relatively supportive compared to the latter half of the trading session, when demand weakened to below moderate levels in the region, reflecting cautious buying sentiment amid ongoing uncertainty in the steel segment.”
Raw material prices
Sponge iron (CDRI) prices in Mandi Gobindgarh were up marginally by INR 100/t d-o-d to INR 29,000/t DAP. Steel-grade pig iron prices in Ludhiana remained steady at INR 35,600/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh held steady d-o-d at INR 41,200/t DAP, reflecting a balanced market with limited movements. Semi-finished steel prices across key regions recorded a modest uptick of INR 100-200/t. However, Mumbai stood out, registering a significant d-o-d increase of INR 600/t, reflecting decent local demand and market momentum.
Rebar prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 45,900/t exw. Despite the price uptick, trading activity remained largely subdued, with overall market sentiment still clouded by uncertainty in the steel sector.
Overview of Mumbai steel market
Rebar (Fe 500) prices on the Mumbai IF route increased marginally by INR 100/t d-o-d to INR 43,800/t exw. Moderate trading activity was observed in the market due to improved buying. Scrap (HMS 80:20) was priced at INR 31,000/t DAP, while the conversion spread between scrap and billet stood at approximately INR 9,000/t.
Auction result
CR busheling scrap auctions by major original equipment manufacturers (OEMs) witnessed full bookings despite weaker bids.
On 25 June 2025, leading OEMs across India conducted auctions for CR busheling scrap from their northern and western region units, attracting solid participation. Despite the entire 3,100 t of auctioned material being fully booked, bids declined notably by INR 1,700-3,000/t compared to the previous auctions.
From the Pantnagar unit in Uttarakhand, approximately 1,700 t were sold at INR 33,600-34,000/t exw.
Meanwhile, the Chakan unit in Maharashtra witnessed the sale of around 1,400 t of a similar grade of scrap at INR 32,500-33,300/t exw.
The price correction signals cautious market sentiment, possibly driven by subdued steel demand and softening finished tags.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,100-5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $333-335/t, which equates to approximately INR 30,896/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 200/t d-o-d to INR 31,000/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 14,700/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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