India: BigMint’s scrap index stays flat even though steel prices show slight improvement – 6 Feb

• DRI, pig iron prices up by INR 200-400/t d-o-d
• Semis, finished steel prices rise INR 100-200/t

BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 36,800/t DAP on 6 February 2025.

Today, semi-finished and finished steel prices saw a slight increase of INR 100-200/t d-o-d, though trading activity remains moderate, according to mill sources. Scrap buying levels were average, with the majority of mills preferring domestic scrap. Mills note that demand for finished steel is still weak. However, there is hope for improved steel demand after mid-February, as some primary mills have already raised their finished steel prices.

As per steelmakers, near-term steel ingot prices in the Mandi market will remain range-bound, fluctuating between INR 42,200 and INR 43,000/t.

Raw material price updates

Sponge iron (CDRI) prices in Mandi rose slightly by INR 200/t to INR 30,400/t DAP, whereas steel-grade pig iron rates in Ludhiana increased by INR 400/t d-o-d to INR 36,000/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh rose by INR 200/t to INR 42,500/t DAP, while semi-finished steel tags in key markets recorded an increase of INR 100-300/t.

Rebar (Fe 500) prices in the region moved up by INR 100/t d-o-d, reaching INR 47,000/t ex-works, though market demand remained average.

Overview of other markets

Ship-breaking scrap prices in Alang, Gujarat, held steady on 6 February compared to the previous day. BigMint assessed HMS (80:20) at INR 33,000/t ex-yard. Trading activity was average yesterday, with both semi-finished and finished steel seeing moderate engagement. With moderate buying interest from Bhavnagar-based IF mills, scrap suppliers opted to maintain current price levels.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-360/t, which equates to approximately INR 33,732/t (including freight). Local HMS (80:20) prices in Mumbai increased by INR 200/t to INR 32,200/t DAP. Indicative prices of shredded from Europe stood at $375-$377/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 14,100/t.

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