HMS (80:20) scrap prices in Chennai saw a w-o-w decrease of INR 100/t, settling at INR 30,400/t. However, prices remained stable d-o-d. In contrast, billet prices saw an increase of INR 300/t d-o-d, reaching INR 42,000/t, while maintaining stability on a w-o-w basis. Rebar prices held steady, assessed at INR 46,000/t, both on a w-o-w and d-o-d basis. The market displays a mixed but relatively stable trend with minor price changes.
Imported and domestic price trends
According to a scrap trader, HMS 90:10 scrap offers from Australia are at $350-355/t CFR Chennai, while HMS 80:20 is offered at $345-350/t. Despite these offers, demand remains weak, as buyers are opting for more affordable domestic scrap, which is priced lower than imported material.
Domestic prices for HMS (80:20) scrap are currently in the range of INR 30,000-30,500/t for buyers who settle deals within seven days. For transactions involving extended credit terms, prices rise to INR 30,500-31,000/t. Most offers are concentrated within the INR 30,200-30,500/t range, with the majority of deals being concluded at these levels, indicating a stable market.
Buyer-supplier sentiments
A mill representative informed BigMint that trade activity in finished steel has seen improvement recently, largely driven by a recovery in the construction industry. Mills are currently less inclined to sell billets in the market, showing greater interest in selling rebar. To maintain cash flow, mills prefer advance payments for billets over credit terms. Offers for advance payment billets are around INR 40,700-41,000/t, while credit transactions are at INR 42,000/t.
According to a scrap supplier, the price range for HMS 80:20 scrap is currently between INR 30,000-31,000/t, depending on payment terms. The market is still facing a liquidity crunch, although there have been some imported scrap deals in recent days. Major mills are currently procuring scrap on 10-20 day credit terms.
Regional comparison
In the Jalna market in western India, rebar and HMS 80:20 scrap prices remained stable, assessed at INR 47,100/t and INR 31,700/t, respectively. Billet prices saw a day-on-day increase of INR 300/t, settling at INR 41,800/t. Trade activity in finished steel has been moderate, with a persistent liquidity crunch affecting the market. Major buyers are currently bidding for scrap in the range of INR 31,500-32,000/t.
Outlook
Market sources indicate that scrap prices are likely to remain range-bound in the near term, with fluctuations of INR +/- 500/t. These price movements will be influenced by the prevailing market conditions, which could lead to short-term price instability.
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