India: BigMint's scrap index remains steady amid moderate finished steel demand

• Alternate raw materials up by INR 200-500/t
  
  
• Finished steel prices rise by INR 400-600/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained steady at INR 38,300/t DAP on 1 April 2025.

A mill owner informed: "Today, the Mandi market observed moderate buying in finished steel due to strong demand from neighbouring states. Additionally, semi-finished steel and scrap prices remained stable d-o-d. Mills expect a range-bound price trend in steel, with ingot and billets expected to stay between INR 43,500/t-44,500/t."

Another mill owner informed: "Scrap is arriving in good volumes from the neighbouring states, and Mandi mills are optimistic about positive growth in the coming days. As a result, large mills are operating at full capacity, especially in HR strip (patra) and TMT production, while medium-scale mills are primarily focused on rerolling furnaces."

Raw material prices

The price of sponge iron (CDRI) in Mandi saw a d-o-d rise of INR 200/t to INR 32,300/t DAP, while steel-grade pig iron prices in Ludhiana climbed up by INR 500/t to INR 39,100/t DAP.

Steel market overview

The price of steel ingots in Mandi Gobindgarh remained unchanged at INR 44,000/t DAP, whereas semi-finished steel prices in leading markets grew by INR 200-500/t during the normalisation phase.

Rebar (Fe 500) prices in Mandi climbed up by INR 600/t to INR 48,900/t exw, while HR strip (patra) prices went up by INR 400/t to INR 46,200/t exw, fuelled by moderate demand.

Overview of Alang market

Alang's ship-breaking melting scrap prices surged by INR 300/t on 1 April 2025, with HMS (80:20) valued at INR 34,800/t exy. The rise in steel prices, both semi-finished and finished, continued during yesterday's trading. In Bhavnagar, high demand for scrap from induction furnaces pushed suppliers to hike their prices.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,600-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-367/t, which equates to approximately INR 33,624/t (including freight). Today, local HMS (80:20) prices in Mumbai increased by INR 300/t to INR 33,300/t DAP. Indicative prices of shredded from Europe stood at $390-395/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 15,700/t.

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