- Scrap prices in Mandi hit 4-year low this week
- Limited scrap availability fails to offer support
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 100/tonne (t) d-o-d to INR 35,300/t DAP on 18 July 2025. W-o-w, the index was down by INR 400-500/t.
Scrap prices in the region dropped by around INR 350-550/t w-o-w, continuing the downtrend into mid-July. Although large mills procured scrap at moderate levels, the persistent slowdown in finished steel sales weighed on market sentiment. The lack of strong end-user demand also impacted liquidity across the value chain, leading to reduced purchasing appetite and putting continued downward pressure on scrap prices.
While there was a notable shortage of scrap in the region, mounting pressure from falling semi-finished and finished steel tags offset any price support. This week, ferrous scrap prices slipped to nearly a 4.5-year low, driven by sluggish demand in the steel sector and sustained pricing pressure that has been building since the start of the year.
Adding to market challenges, major primary steel producers reduced their finished steel prices this week, further intensifying the price pressure. As a result, secondary steel mills were compelled to reduce their offers to remain competitive, signalling a tough pricing environment across the value chain.
A mill owner informed BigMint, “The influx of competitively priced semi-finished steel from neighbouring states continues to challenge local market dynamics, as buyers increasingly turn to cost-effective outsourcing options to maintain margins. In the Mandi steel market, elevated inventory levels are adding to the pressure, leading to subdued sales for local mills. This accumulation is not only straining liquidity but also affecting overall market confidence. With demand yet to show any significant recovery, mills are facing mounting challenges in managing both production and cash flow efficiently.”
Uncertainty continues in the Mandi steel market, as mill owners expect ingot prices to be in the range of INR 40,000-40,500/t, with the market approaching a bottom.
Raw material prices
Sponge iron (CDRI) prices in Mandi remained unchanged d-o-d at INR 28,900/t on a DAP basis. However, on a w-o-w basis, prices registered a marginal decline of INR 190/t, indicating mild pressure in the market.
Meanwhile, steel-grade pig iron prices in Ludhiana also held steady at INR 35,300/t DAP, showing no change both d-o-d and w-o-w.
Steel market trends
In Mandi Gobindgarh, steel ingot prices decreased by INR 50/t d-o-d to INR 40,200/t DAP. Similarly, semi-finished steel prices across major trading hubs saw a downtrend of INR 50-150/t d-o-d. Semi-finished steel prices in Mandi fell by INR 500/t w-o-w amid limited trades.
Rebar prices in Mandi remained stable d-o-d at INR 45,100/t exw. However, w-o-w, prices saw a drop of INR 390/t due to a slowdown in steel demand.
Overview of Alang market
Melting scrap prices in Gujarat’s Alang ship-breaking yard witnessed a modest rise of INR 100/t d-o-d on 18 July 2025, according to BigMint’s latest assessment. HMS (80:20) was assessed at INR 31,700/t ex-yard. The price hike comes on the back of improved trade activity in the semi-finished and finished steel segments witnessed during the previous trading session. Additionally, healthy buying interest from steelmakers encouraged scrap suppliers to raise their offers, reflecting growing optimism in the market.
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 $330-335/t, which equates to approximately INR 31,052/t (including freight). HMS (80:20) prices in Mumbai remained stable at INR 30,500/t DAP today, with no movement observed in scrap prices over the past five working days, indicating a steady and balanced market environment in the region. Indicative prices of shredded from Europe stood at $358-$360/t CFR Nhava Sheva.
Imported scrap offers
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,000/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
Leave a Reply