- Semi-finished prices stable w-o-w
- Scrap prices up by INR 100/t d-o-d
Chennai’s HMS (80:20) scrap prices rose slightly by INR 100/tonne (t) d-o-d to INR 30,500/t, according to BigMint’s latest assessment. This reflects a weekly rise of INR 200/t. Billet prices remained stable both on a w-o-w and d-o-d basis, holding steady at INR 44,500/t. Rebar prices saw a modest increase of INR 200/t w-o-w, reaching INR 48,000/t, with no change on a d-o-d basis. The market remains relatively steady with only minor price changes observed.
Imported and domestic price trends
According to a scrap trader, Australian shredded scrap offers are currently positioned at $383-385/t, while buyers are bidding between $373-375/t. HMS 80:20 scrap is priced at $365-370/t. Despite these competitive offers, demand for imported scrap remains weak, as many buyers are turning to more affordable domestic scrap options.
Domestic prices of HMS (80:20) scrap are currently ranging at INR 30,500-31,000/t for buyers making immediate payments. For transactions with extended credit terms, prices have risen to INR 31,000-31,500/t. The majority of offers are concentrated within the INR 30,500-31,500/t range, with most deals being concluded at these levels, indicating a stable market environment.
Buyer-supplier sentiments
A mill representative noted that trade activity in finished steel has slowed down in recent days. With the financial year-end approaching, market participants are focused on managing their books, which has impacted trade activities in steel materials. Currently, mills hold a rebar inventory of approximately 7-8 days. Pellet-based sponge iron is being offered in Chennai at INR 27,000-27,500/t DAP, suggesting a stable demand for raw materials in the region despite the slow pace in finished steel trading.
According to a scrap supplier, HMS (80:20) scrap prices in the domestic market are currently trading between INR 30,500-31,500/t, with price variations depending on payment terms. Scrap supply has slowed somewhat due to the ongoing Ramadan festival, which has prompted buyers to offer higher prices to secure material.
Regional comparison
In the western India-based Jalna market, billet prices have decreased slightly, dropping by INR 100/t to INR 43,000/t, while HMS 80:20 prices saw a small increase of INR 100/t to INR 42,900/t. On the other hand, rebar prices have remained stable at INR 49,500/t. Market activity seems moderate, with steady trade in both semi-finished and finished steel products. Additionally, scrap arrivals at mills appear to be in line with their requirements at the current price levels.
Outlook
As the financial year-end approaches, the steel market is expected to see stable price movements in the coming days. However, scrap prices are likely to remain within a narrow range, with potential fluctuations of INR +/- 500/t, depending on market conditions.
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