India: BigMint’s scrap index remains stable d-o-d amid cautious market sentiment

• Sponge iron prices remain steady d-o-d
• Finished steel tags drop by INR 100-300/t

BigMint’s domestic end-cutting scrap index for the Mandi Gobindgarh market held firm d-o-d at INR 37,000/tonne (t) DAP on 29 April 2025, reflecting a stable demand-supply balance and muted trade movements.

A mill owner informed BigMint, “The steel market in Mandi Gobindgarh witnessed a largely stable trend today, with prices holding steady amid subdued buying interest. Trading activity remained below average, as most buyers stayed cautious, awaiting clearer demand cues. Mandi market participants and mills expect steel ingot and billet prices to remain range-bound in the near term, likely fluctuating between INR 42,600-43,300/t.”

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable d-o-d at INR 31,200/t DAP. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 50/t d-o-d to INR 37,300/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained steady d-o-d at INR 42,800/t DAP during the reporting and normalisation period, indicating a cautious but stable sentiment among buyers amid fluctuating input costs. Despite the stability in Mandi, semi-finished steel prices in other key markets witnessed a mild correction of INR 50-200/t d-o-d, reflecting slightly subdued buying interest.

In the rebar (Fe500), Mandi saw a minor price decline of INR 100/t d-o-d, settling at INR 48,200/t exw. Market participants attributed this softening to slower downstream demand. Meanwhile, HR strip (patra) prices came under increased pressure, falling INR 300/t d-o-d to INR 44,500/t exw, influenced by lukewarm inquiries from end-users.

Overview of other markets

Alang’s ship-breaking scrap market witnessed a price correction of INR 300/t on 29 April 2025. HMS (80:20) scrap stood at INR 34,300/t ex-yard, as assessed by BigMint. The reduction follows weaker steel prices and tepid scrap trading, leading suppliers to reduce their quotes.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,001/t (including freight). Local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 33,400/t DAP. Indicative prices of shredded from Europe stood at $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 15,800/t.

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