- Improved steel trading, tight supply lift Chennai scrap prices
- Rebar prices increase INR 1,300/t w-o-w, semis prices rise too
HMS (80:20) scrap prices in Chennai increased by INR 1,000/t w-o-w to INR 32,300/t on 27 August 2026, despite a INR 100/t d-o-d decline, according to BigMint’s latest assessment. In the semi-finished steel segment, billet prices strengthened by INR 1,200/t w-o-w to INR 44,500/t, with no change recorded on a d-o-d basis. Similarly, rebar prices climbed by INR 1,300/t w-o-w to INR 48,800/t, while edging up by INR 100/t d-o-d. The sharp w-o-w gains across the steel value chain indicate strengthening market sentiment, supported by improved finished steel trading activity and stronger raw material demand.
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 $340-342/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 32,000-32,500/t for spot transactions with immediate payment, while extended credit-term deals were concluded at INR 32,500-33,000/t. Market participants noted that some mills with higher procurement requirements have started quoting INR 33,000-33,500/t, reflecting stronger buying interest for larger volumes.
Overall, market activity remained largely concentrated within the INR 32,000-33,000/t range, highlighting relatively balanced demand-supply conditions. However, higher transaction levels for larger quantities and extended payment terms indicate firming market sentiment and increasing competition among mills for available scrap.
Buyer-supplier sentiments
A mill representative noted that sponge iron prices have risen by INR 1,000-1,500/t w-o-w, driven mainly by higher iron ore and coal prices. Trading activity in the raw material segment has improved over the past few days, with suppliers maintaining higher offer levels. Meanwhile, limited imported scrap bookings have resulted in tighter scrap availability, adding support to billet prices as mills face higher raw material costs.
The representative further noted that rebar demand and prices have also improved compared with the past couple of weeks. Positive sentiment in the semi-finished steel segment, combined with firmer raw material prices and improving finished steel demand, has strengthened the overall market outlook.
A scrap supplier shared with BigMint that HMS (80:20) scrap prices are currently ranging between INR 31,000-32,000/t, depending on payment terms and mill-specific requirements. The supplier stated that lower imported scrap bookings, along with tight domestic availability, have created supply-side constraints in the market.
Meanwhile, improved demand for sponge iron and higher sponge iron prices have further supported scrap prices, as mills continue to assess the economics of different raw material options. The combination of constrained scrap availability and firmer alternative metallic prices has strengthened the overall pricing environment, limiting the scope for any significant downward correction in domestic scrap prices.
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. Improved trading activity in billets and rebars may further strengthen sentiment, although mills are likely to continue requirement-based procurement, limiting significant price gains. 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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