- Firm steel prices support domestic scrap market
- Billet prices increased by INR 300/t w-o-w
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai increased by INR 300/t week-on-week to INR 31,100/t on 6 August 2026, while remaining unchanged compared with the previous day. In the semi-finished segment, billet prices also strengthened by INR 300/t w-o-w to INR 43,300/t, with no daily variation recorded. Meanwhile, rebar prices remained stable at INR 47,000/t on both daily and weekly comparisons. Overall, the Chennai market reflected firm but cautious sentiment, supported by stable trading activity, balanced supply-demand fundamentals, and improved pricing in the scrap and billet segments, while finished steel demand remained steady.
Imported and domestic price trends
According to market participants, Australia-origin shredded scrap was offered at $365-370/t CFR Chennai, while HMS (80:20) was quoted at $330-335/t CFR. Import demand remained subdued, with buyers quoting bids around $10-15/t below prevailing offer levels, reflecting cautious market sentiment. Market participants noted that domestic scrap prices continue to offer a more economical procurement option than imported material, prompting mills to rely primarily on local supplies. As a result, fresh import bookings remained limited, and trading activity in the imported scrap market continued to be subdued.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 30,800-31,200/t for spot transactions with immediate payment, while extended credit-term deals were concluded at INR 31,000-31,500/t. Overall, market activity remained confined within the INR 30,800-31,500/t range, highlighting balanced demand-supply dynamics despite cautious buying sentiment. Transaction prices continued to vary based on payment terms, procurement volumes, and mill-specific requirements, with premiums observed for deals involving longer credit periods, while mills largely continued with requirement-based procurement.
Buyer-supplier sentiments
According to market participants, stronger billet and rebar prices have positively influenced overall market sentiment this week, providing support to domestic scrap prices. Improved trading activity in the finished steel segment has encouraged mills to continue purchasing scrap, although procurement remains primarily requirement-based rather than aimed at inventory replenishment.
Market participants further noted that active demand for billets and rebars has helped maintain current price levels, while trading activity has picked up across both project and retail segments in recent days. The improvement in downstream demand has strengthened confidence across the steel value chain, supporting stable scrap prices and reducing downward pressure on the domestic market.
A scrap supplier shared with BigMint that HMS (80:20) scrap prices are currently ranging between INR 30,800-31,500/t, with transaction prices varying according to payment terms and mill-specific procurement volumes. The supplier noted that lower arrivals of imported scrap and reduced fresh bookings have tightened domestic availability, while processing constraints have further limited supply. As a result, the market is witnessing supply-side tightness, which continues to support firm domestic scrap prices.
The supplier further added that the recent recovery in billet and rebar prices has strengthened domestic HMS (80:20) prices, although import activity remains subdued because overseas offers are still above workable levels. Consequently, most mills continue to prefer domestic scrap over imported material for their procurement needs.
Outlook
The near-term outlook for the Chennai scrap market remains cautiously positive, with firm domestic scrap prices supported by lower import arrivals and improving demand for billets and rebars. While mills are likely to continue procuring material on a need-based basis, tighter supply conditions are expected to provide downside support. Overall, HMS (80:20) scrap prices are expected to remain stable to firm, with movements limited to around INR +/- 200-500/t.
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