According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai increased by INR 100/t w-o-w to INR 30,700/t, while remaining stable d-o-d. Billet prices stood steady at INR 41,300/t on a d-o-d basis but witnessed a decline of INR 700/t w-o-w. Meanwhile, rebar prices experienced a w-o-w drop of INR 100/t to INR 45,700/t, holding firm d-o-d. Market activity indicates a mixed trend with stability in daily pricing and minor fluctuations over the week.
Imported and domestic price trends
According to a scrap trader, shredded scrap offers from Australia were quoted at approximately $365-370/t CFR Chennai, while HMS (80:20) offers stood at around $350-355/t. However, buying interest remained subdued as domestic scrap prices continue to be more competitive than imported material.
HMS (80:20) scrap prices in the domestic market were quoted at INR 30,500-31,000/t for buyers paying within seven days. For extended payment terms, prices were higher, at INR 31,000-31,500/t. Most offers remained within the INR 30,500-31,000/t band, and a significant share of deals closed at these rates.
Buyer-supplier sentiments
According to a mill representative, market activity remains subdued following the Pongal festival holidays, with trade in finished steel yet to pick up momentum. Mills are facing challenges in procuring scrap at current offer levels. However, the recent production cuts by major mills have allowed them to manage operations effectively despite procurement difficulties.
According to a scrap supplier, HMS (80:20) scrap prices in the domestic market are currently in the range of INR 30,500-31,500/t, depending on payment terms. The market has been facing a liquidity crunch, leading to sluggish trade activity in the finished steel segment over recent weeks. Market sentiment remains subdued; however, cautious optimism surrounds the potential imposition of import safeguard duties and the forthcoming budget, which could influence market dynamics. Buying activity remains notably slow as stakeholders await further clarity.
Regional comparison
In the Jalna market, western India, billet prices increased by INR 100/t d-o-d to INR 41,300/t, while rebar prices rose by INR 200/t d-o-d to INR 46,200/t. On the other hand, HMS 80:20 prices remained stable d-o-d at INR 31,400/t. Trade activities has been improved in the today’s trading session for finished steel as compared to previous couple of days.
Outlook
According to market participants, the steel market is expected to witness positive movement in the coming weeks, driven by anticipation surrounding the upcoming annual budget announcement next month and speculation about the imposition of safeguard duties on imported material. Despite these factors, scrap prices are likely to remain within a defined range, reflecting a cautious yet stable market outlook.
Leave a Reply