- Scrap inflows halted for 3-4 days amid rains
- Alternative raw material prices remain firm
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 200/t d-o-d to INR 34,300/t DAP on 1 September 2025.
Steel trade activity in northern India has remained subdued over the past two weeks, with Mandi Gobindgarh scrap prices witnessing a persistent downtrend amid minimal transactional volumes. Market participants attributed the slowdown primarily to heavy monsoon rains, which have significantly disrupted logistics and dampened buying sentiment.
In Ludhiana, market activity came to a near standstill today due to flood-like conditions, effectively halting most operations.
A mill owner informed BigMint, “Only need-based purchases are taking place at the moment, and broader buying interest has remained muted for several weeks.”
Operational disruptions continued across the region, as key transportation routes were impacted by heavy rainfall. Inbound scrap movement has also been nearly halted over the past 3-4 days, further constraining production and trading activity.
Raw material update
The sponge iron (CDRI) market in Mandi Gobindgarh remained stable d-o-d, with prices holding at INR 30,000/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana maintained a steady trend over the past three days, trading at INR 35,500/t DAP.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh declined by INR 300/t d-o-d to INR 39,100/t DAP, pressured by sluggish demand and constrained conversion margins. Ingot prices across key production hubs also softened by INR 100-300/t d-o-d.
Rebar (Fe500) prices in Mandi slipped by INR 200/t to INR 44,100/t ex-works. Market participants attributed the ongoing weakness to lacklustre infrastructure and construction demand, compounded by seasonal disruptions impacting supply chains.
Alang scrap market
On 1 September 2025, ship-breaking melting scrap prices in the Alang market of Gujarat inched up by INR 200/t from the previous day. HMS (80:20) traded at INR 31,600/t ex-yard. Semi-finished and finished steel prices showed little change in the prior session. Enhanced scrap inquiries prompted sellers to lift their prices today.
Upcoming scrap auctions
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 $332-$334/t, which equates to approximately INR 31,644/t (including freight). HMS (80:20) prices in Mumbai increased by INR 200/t to INR 30,900/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 13,400/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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