- Imported scrap trading activity remained muted
- Billet prices improve w-o-w; rebar prices soften
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai remained largely stable w-o-w at INR 31,800-32,200/t, reflecting balanced domestic availability and cautious procurement by mills. In the semi-finished segment, billet prices improved by around INR 200/t w-o-w to INR 41,200/t, supported by slightly better buying activity and improved sentiment in the downstream market.
In the finished steel segment, rebar prices declined by around INR 200/t w-o-w to INR 46,000/t, primarily due to weak offtake from end-user industries and the project segment. Despite stable raw material prices, subdued demand continued to weigh on market sentiment.
Imported and domestic price trends
Market participants reported that Australia-origin shredded scrap was offered at $385-395/t CFR Chennai, while HMS (80:20) was quoted at $365-370/t CFR. Despite the ongoing shortage of quality scrap in the domestic market, buying interest for imported material remained subdued.
Sources indicated that buyers continued to bid nearly $15-25/t below prevailing offer levels, reflecting cautious sentiment and limited appetite for fresh bookings. Additionally, domestic scrap continues to be more economically viable than imported material, discouraging significant import activity in the Chennai market.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 31,800-32,200/t for immediate payment deals, while credit-based transactions were concluded at slightly higher levels depending on payment terms and volumes.
Overall, trading activity remained concentrated within the INR 31,800-32,200/t range, reflecting stable supply-demand fundamentals. Variations in deal prices were primarily driven by payment terms, grade specifications, and mill-specific procurement requirements. Market participants continued to adopt a need-based purchasing strategy amid subdued finished steel demand.
Buyer-supplier sentiments
According to a mill source, billet demand has shown slight improvement over the past week, supported by marginally better buying activity. However, overall consumption remains below expectations, and mills continue to closely monitor inventory levels and production schedules.
On the raw material side, scrap availability remains relatively tight, supporting domestic scrap prices. However, imported scrap continues to be unviable at prevailing offer levels, limiting overseas bookings and keeping buyers focused on domestic procurement channels.
Regional comparison
In the western India-based Jalna market, HMS (80:20) scrap prices remained stable at around INR 33,300-33,500/t. Billet and rebar prices witnessed a marginal decline w-o-w due to weak buying interest and subdued demand from downstream consumers.
According to market sources, production cuts implemented by several mills in recent weeks have helped balance inventories. Meanwhile, moderate scrap availability and stable raw material prices have supported procurement activity despite demand remaining below seasonal norms.
Outlook
The Chennai scrap market is expected to remain largely range-bound in the near term. While billet prices have shown some improvement, demand recovery in the finished steel segment remains gradual. Stable domestic scrap availability and the limited viability of imported scrap due to elevated landed costs are likely to provide support to prices.
Mills are expected to continue need-based procurement while closely monitoring finished steel demand and conversion economics. Scrap prices are likely to remain stable within a narrow range, with movements expected to be limited to INR +/-200-300/t in the near term.
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