India: BigMint's ferrous scrap index gains 300/t d-o-d amid higher steel prices

• Raw material prices edge up by INR 100/t to 350/t
  
  
• Semis, finished steel prices improve by INR 100-300/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/tonne (t) d-o-d to INR 36,800/t DAP on 5 March 2025. The market has seen average activity in scrap, as mills are focusing more on selling their finished material rather than purchasing raw material at higher prices. This comes as the Mandi steel market improves, with scrap and semi-finished products seeing a price increase of INR 300/t.

A rebar manufacturer informed that there was a sudden uptick in steel prices today. However, from a demand perspective, trade activity in the Mandi market has been moderate. Additionally, liquidity issues persist in the major markets.

A Patra-based mill informed that demand for HR strip (patra) pipes has been good since last week, with most mills experiencing decent demand in Mandi. This increase in demand is the primary reason for the rise in prices. Today, prices went up by INR 400/t, reaching INR 43,800/t exw.

Raw material price updates

Prices of sponge iron (CDRI) in Mandi rose by INR 100/t d-o-d to INR 31,100/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana increased by INR 350/t d-o-d, reaching INR 37,600/t DAP.

In Mandi, the charge mix of steel manufacturers consists of 80-85% scrap and 15% sponge iron.

Steel market overview

Steel ingot prices in Mandi Gobindgarh increased by INR 300/t day-on-day (d-o-d), reaching INR 42,700/t DAP during the reporting period. In contrast, semi-finished steel prices in key markets saw a d-o-d uptick of INR 100-200/t.

The price of rebar (Fe 500) in Mandi Gobindgarh saw a slight increase of INR 100/t to INR 47,100/t exw. Meanwhile, the finished steel markets in Chennai and Hyderabad experienced the most significant price hike of INR 500/t today.

Overview of Alang

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 5 Mar'25. According to BigMint's assessment, HMS (80:20) prices were at INR 33,200/t ex-yard. The region experienced moderate trading activity for both semi-finished and finished steel, alongside steady scrap buying interest. As a result, scrap suppliers opted to keep their prices stable today.

Auction update

For more details: https://www.bigmint.co/tenders/ferrous

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 $350-355/t, which equates to approximately INR 33,095/t (including freight). Today, local HMS (80:20) prices in Mumbai fell by INR 100/t to INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $375/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 15,000/t.

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