- Mills focus on keeping scrap inventories lean
- Semi-finished steel prices continue to decline
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 200/tonne (t) d-o-d to INR 35,000/t DAP on 21 July 2025.
A mill owner informed BigMint, “Steel markets in Mandi Gobindgarh remained sluggish today due to weak demand and expectations of further price declines. Prices of semi-finished and finished steel and scrap dropped INR 100-200/t. Trading volumes were low as mills did cautious, need-based procurement. Larger mills favoured domestic scrap over imports, driven by improved availability and relaxed GST checks. With mills keeping inventory levels lean and showing no interest in imported scrap, market sentiment remains cautious. Weather-related logistics disruptions further slowed momentum, keeping the market in a wait-and-watch mode.”
Raw material prices
Sponge iron (CDRI) prices in Mandi inched up by INR 100/t d-o-d to INR 28,900/t on a DAP basis. Meanwhile, pig iron prices in Ludhiana remained steady at INR 35,300/t DAP for the fourth consecutive day.
Steel market trends
In Mandi Gobindgarh, steel ingot prices declined by INR 200/t d-o-d, settling at INR 39,900/t on a DAP basis. Semi-finished steel prices across key trading hubs also witnessed a downward movement, slipping by INR 100-200/t d-o-d. Semi-finished steel prices have been sliding consistently for the past three days in Mandi.
Rebar (Fe500) prices in Mandi dropped by INR 100/t d-o-d to INR 45,000/t ex-works, while HR strip (patra) tags fell sharply by INR 400/t to INR 42,200/t ex-works. The slowdown in the finished steel segment continued, with weak demand weighing on market sentiment.
Auction result
Week 29: A leading multinational infrastructure company conducted a heavy steel scrap auction from Hazira, Gujarat, offering approximately 1,200 t. The entire material was booked at INR 34,000/t ex-plant – a notable decline of INR 2,000/t compared to its last auction held in April 2025.
In another development, a major motorcycle manufacturer conducted multiple auctions for CR busheling. Around 600 t were sold from its Bangalore unit at INR 35,300/t ex-plant, while an additional 100 t of the same grade were auctioned from its Manesar facility at INR 34,800/t ex-plant.
Major scrap auctions
According to the CR busheling scrap auction schedule compiled by BigMint, a substantial 9,000 t from Maharashtra and approximately 2,000 t from Uttarakhand are expected to be auctioned in the upcoming days.
Brief details of the upcoming auctions have been listed on BigMint’s tender platform: https://tinyurl.com/FECRC2107
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 $330-335/t, which equates to approximately INR 31,104/t (including freight). HMS (80:20) prices in Mumbai remained stable at INR 30,500/t DAP today, with no movement observed in scrap tags over the past five working days, indicating a steady and balanced market environment in the region. 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 12,850/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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