India: BigMint's scrap index increases by INR 100/t amid moderate market sentiments

• Substitute raw material prices stable
  
  
• Semi-finished steel prices gain INR 100/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, inched up by INR 100/t d-o-d to INR 35,700/t DAP on 13 August 2025. The Mandi steel scrap market remained steady today, with no major price fluctuations reported. Moderate demand for semi-finished steel provided support to current prices. As a result, scrap suppliers increased their offers by INR 100/t, reflecting a measured response to stable market conditions.

A mill owner informed, "The Mandi steel market has remained rangebound for three consecutive days this week, largely due to holidays and limited trading activity. Price movements have been minimal, fluctuating within INR 100-200/t."

However, local steel mills are showing optimism for the coming week, anticipating a pick-up in demand across the steel value chain. This sentiment is supported by price hikes already announced by primary steel producers in both finished steel and raw materials earlier this month.

Industry participants are now hopeful that the uptrend in prices and improved market sentiment will reflect positively in secondary steel markets as well.

Raw materials

Sponge Iron prices in Mandi remained stable d-o-d at INR 30,000/t DAP. Pig iron prices in Ludhiana continued to hold firm for the seventh consecutive day, maintaining a steady level at INR 35,800/t DAP.

Steel market trend

The semi-finished steel market in Mandi Gobindgarh recorded a day-on-day increase of INR 100/t, with current prices assessed at INR 40,600/t DAP.

Across major steel hubs, the market exhibited a mixed price trend. While some regions saw price increases of INR 100/t, others witnessed a correction ranging between INR 100-400/t. The fluctuations reflect regional variations in demand and trading activity within the steel sector.

Rebar (Fe500) prices in Mandi fell by INR 100/t to INR 45,400/t ex-works. The price drop comes as buying activity in the region remained below moderate levels, reflecting cautious market sentiment and limited spot demand.

Overview of Alang market

On 13 August 2025, ship-breaking scrap prices in Gujarats Alang market registered a drop of INR 200/t, driven by softening demand trends. According to BigMint, HMS (80:20) was assessed at INR 31,600/t, ex-yard. The correction comes in the wake of a decline of INR 100-200/t in semi-finished steel prices in the region, reflecting sluggish demand for finished steel. With trade activity remaining average, scrap suppliers adjusted their offers downward to stay competitive and encourage buying.

One scrap supplier informed, "The ship-breaking yard in Alang is witnessing stable activity, with around 35 to 40 ships currently under dismantling. In a sign of continued momentum, another 5 to 7 ships are expected to arrive soon for recycling."

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/t-$333/t, which equates to approximately INR 31,319/t (including freight). HMS (80:20) prices in Mumbai remained steady at INR 31,500/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 13,250/t.

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