- Semi-finished steel prices decrease d-o-d
- Maintenance at key mill tightens billet supply
HMS (80:20) scrap prices in Chennai declined by INR 200/t on a weekly basis, settling at INR 31,300/t, while remaining steady d-o-d. Billet prices dropped by INR 200/t both d-o-d and w-o-w, now assessed at INR 43,300/t. Rebar prices held firm at INR 48,000/t on a daily basis but registered a weekly decrease of INR 300/t, reflecting mild pressure on finished steel segments.
Imported and domestic price trends
A scrap trader informed that current offers for shredded scrap from Australia stand at $365-370/t CFR Chennai. HMS 80:20 offers are slightly lower, ranging between $345-350/t. Additionally, a recent transaction involving 500 tonnes of New Zealand-origin shredded scrap was concluded at $365/t CFR Chennai, reflecting steady import activity and pricing within a narrow band.
Domestic HMS (80:20) scrap prices are currently ranging between INR 31,000-31,500/t in spot deals with immediate payment. For transactions involving extended credit, prices are slightly higher, ranging from INR 31,500-32,000/t. The bulk of offers and concluded deals fall within the INR 31,000-32,000/t band, indicating a stable pricing environment supported by consistent trade activity.
Buyer-supplier sentiments
A mill representative, speaking to BigMint, said, the billet market is experiencing a supply disruption due to maintenance at a major production facility. Some transactions have also been seen in neighbouring states, supporting billet prices. Finished steel demand is moderate, leading to rising inventories at mills. To manage this, certain producers have started offering discounts. In contrast, sponge iron prices remain largely stable, reflecting balanced supply-demand conditions.
A scrap supplier informed that HMS 80:20 is currently being traded within the INR 31,000-32,000/t range, depending on payment terms, with prices remaining stable at the mill level. Market sources indicate that a vessel carrying raw pellets has arrived at Chennai Port from Oman, although specific pricing and buyer details have not yet been disclosed. Additionally, it is anticipated that 3-4 scrap vessels will be beached this month, suggesting a steady flow of imported material into the domestic market.
Regional market overview
In the Jalna market in western India, prices of rebar, and HMS 80:20 scrap remained stable, assessed at INR 48,300/t, and INR 32,700/t, respectively. Billet prices increased slightly by INR 100/t to INR 42,400/t d-o-d. Moderate trade activity was noted today across both semi-finished and finished steel segments. Scrap supply at mills is also moderate. Some mills that previously booked scrap at higher offers are now bidding at lower levels for new purchases. However, suppliers are resisting lower prices and holding back material, signalling a potential supply-side firmness.
Outlook
Although the market is currently facing a slowdown, HMS scrap prices are expected to remain range-bound in the near term, with potential fluctuations limited to INR +/- 500/t. The short-term price direction will largely depend on evolving market dynamics, including demand trends, mill procurement behaviour, and incoming scrap supply.
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