- Tight availability, stronger demand support scrap
- Billet prices increase by INR 1,000/t w-o-w
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai increased by INR 1,000/t w-o-w to INR 33,300/t on 3 September 2026, while edging up by INR 100/t d-o-d. In the semi-finished steel segment, billet prices strengthened by INR 1,000/t w-o-w to INR 46,500/t, although they remained unchanged on a daily basis. Meanwhile, rebar prices were stable d-o-d at INR 49,500/t ex-works but advanced by INR 700/t w-o-w, supported by improved trading activity.
The firm weekly movement across scrap, billet and rebar indicates a relatively positive market sentiment, although buyers remain focused on requirement-based procurement.
Imported and domestic price trends
Market participants reported that Australia-origin shredded scrap was offered at $380-382/t CFR Chennai, while HMS (80:20) was quoted at $345-350/t CFR. However, buyers were bidding $10-15/t lower than the prevailing offer levels. Buying interest remained subdued, as domestic scrap offers are currently more cost-effective compared to imported material, thereby limiting fresh bookings.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 33,000-33,500/t for spot transactions with immediate payment, while extended credit-term deals were concluded at INR 33,500-34,000/t. Overall, market activity remained concentrated within the INR 33,000-34,000/t range, highlighting balanced demand-supply dynamics despite cautious procurement sentiment.
Market participants indicated that payment terms, procurement volumes, and mill-specific requirements continued to influence transaction prices, with premiums observed for deals involving longer credit periods.
Buyer-supplier sentiments
Market sentiment in Chennai has improved, supported by firmer raw material prices and better downstream steel demand. A mill representative said sponge iron prices have increased by INR 1,000-1,200/t w-o-w, primarily due to higher iron ore and coal prices. Raw material trading has also picked up over the past few days, with suppliers maintaining elevated offer levels.
Meanwhile, subdued imported scrap bookings have resulted in tighter scrap availability, supporting billet prices as mills contend with higher input costs. Rebar demand and prices have strengthened compared with the past two weeks, further improving market confidence. With positive sentiment in the semi-finished steel segment, firmer raw material costs and improving finished-steel demand, the near-term market outlook remains cautiously positive.
A scrap supplier shared with BigMint that HMS (80:20) scrap prices are currently trading in the INR 33,000-34,000/t range, depending on payment terms and mill-specific requirements. According to the supplier, reduced imported scrap bookings and tight domestic availability have tightened the overall supply situation, allowing sellers to sustain firmer price expectations.
At the same time, higher prices for alternative metallics have improved the pricing environment for domestic scrap, as mills face increased raw material costs. The combination of constrained scrap supply, limited imports and firmer alternative metallic prices is providing support to the market. Consequently, the scope for a significant downward correction in domestic HMS (80:20) prices appears limited in the near term.
Outlook
The near-term outlook for Chennai scrap remains cautiously positive, with supply-side constraints continuing to support domestic HMS (80:20) prices. Limited imported scrap bookings and higher sponge iron prices are expected to keep replacement costs elevated. Overall, HMS (80:20) scrap prices are expected to remain stable to firm, with movements limited to around INR +/- 200-500/t in the coming days.
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