- Tight scrap supply pushes up Chennai prices
- Supply constraints offset moderate steel demand
HMS (80:20) scrap prices in Chennai increased by INR 300/t d-o-d and INR 200/t w-o-w to INR 31,300/t, according to BigMint’s assessment on 13 August 2026. In the semi-finished segment, billet prices remained stable at INR 43,300/t, with no change recorded on either a daily or weekly basis. Similarly, rebar prices held steady at INR 47,000/t on both d-o-d and w-o-w comparisons.
Market participants indicated that the rise in scrap prices was supported by firm raw material demand and relatively limited scrap availability, while stable billet and rebar prices kept the overall steel market sentiment balanced.
Imported and domestic price trends
According to market participants, Australia-origin shredded scrap was offered at $372-374/t CFR Chennai, while HMS (80:20) was quoted at $336-338/t CFR. Import buying activity remained subdued, with buyers quoting bids around $15-20/t below prevailing offer levels, reflecting a persistent bid-offer gap and cautious sentiment.
Market sources noted that fresh import bookings continued to remain limited, as overseas offers were considered commercially unviable compared with domestic scrap. Despite relatively tight domestic availability, mills continued to prefer locally sourced material because of its cost advantage. Consequently, import trade remained subdued, with buyers largely relying on domestic scrap to meet their immediate procurement requirements.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 31,000-31,500/t for spot transactions with immediate payment, while extended credit-term deals were concluded at INR 31,500-32,000/t. Overall, market activity remained concentrated within the INR 31,000-32,000/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. Meanwhile, mills largely continued to procure scrap on a requirement-based basis, limiting significant changes in overall market activity.
Buyer-supplier sentiments
According to market participants, sponge iron prices have eased slightly over the past few days, mainly due to subdued demand and buyers’ reluctance to book material at elevated offer levels. Meanwhile, billet and rebar prices have remained largely stable, as demand across the semi-finished and finished steel segments continues at a moderate level. Market participants indicated that trading activity remains cautious, with buyers adopting a wait-and-watch approach and limiting procurement to immediate requirements amid uncertain demand conditions.
A scrap supplier told BigMint that HMS (80:20) scrap prices are currently hovering between INR 31,000-32,000/t, with transaction values varying based on payment terms and mill-specific procurement volumes. The supplier stated that lower arrivals of imported scrap, coupled with reduced fresh bookings, have tightened domestic availability.
Meanwhile, ongoing processing constraints have further restricted supply, resulting in noticeable supply-side tightness. This limited availability is providing support to prevailing domestic scrap prices, despite cautious buying activity and moderate downstream steel demand. Market participants expect the supply constraints to continue supporting prices in the near term, unless import availability improves significantly.
Outlook
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. Reduced import bookings and processing constraints are likely to keep supply tight. While mills may continue requirement-based procurement amid moderate steel demand, limited scrap availability is expected to restrict significant downward price corrections.
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