- Semi-finished steel prices drop by INR 500/t w-o-w
- Scrap prices remain stable w-o-w
BigMint’s latest assessment highlights that HMS (80:20) scrap prices in Chennai have remained stable at INR 30,200/t, with no variations d-o-d or w-o-w. Billet prices were steady d-o-d but experienced a w-o-w decrease of INR 500/t, now at INR 43,000/t. Rebar prices followed a similar trend, dropping INR 300/t w-o-w to INR 46,800/t, while stable on d-o-d.
Imported and domestic price trends
Chennai’s imported scrap market remained sluggish as buyers preferred cost-effective domestic sponge iron and scrap over imported scrap.
Australian HMS was offered at $365/t CFR Chennai, with bids heard at $355/t, while no firm shredded offers emerged mid-week. However, around 1,000 t of Australian shredded was reportedly traded at $372/t CFR Chennai earlier in the week. UK/EU suppliers anticipated price gains following the US uptrend, but weak buying interest in India kept the market subdued.
Domestic prices for HMS (80:20) scrap are currently ranging between INR 30,000-30,500/t for buyers making immediate payments. For transactions involving extended credit terms, prices have risen to INR 30,500-31,000/t. Most offers are concentrated within the INR 30,000-31,000/t range, with the majority of deals being concluded at these levels, indicating a stable market.
Buyer-supplier sentiments
A mill representative highlighted that trade activity for finished steel has improved over the past couple of weeks, with strong demand for rebar. Currently, rebar inventory levels at mills are around 7-8 days. However, because of the ongoing Ramadan and the approaching Holi festival, trade activities may be impacted due to labour shortages. Despite this, scrap offers have remained stable, as the supply of material to mills continues to be sufficient.
A scrap supplier reported that the price range for HMS 80:20 scrap was between INR 30,000-31,000/t, depending on payment terms. Although billet and rebar prices have declined recently, buyers are maintaining their scrap procurement prices at the same levels. This is because when steel prices increased last week buyers refrained from raising scrap purchase prices due to doubts about the sustainability of higher billet and rebar offers.
Regional comparison
In the western India-based Jalna market, billet, rebar and HMS 80:20 prices remained stable, assessed at INR 42,00/t, INR 49,000/t and INR 32,400/t, respectively. Trade activity in the finished steel sector remained average, with mills reporting moderate scrap supply, influenced by the Holi celebrations. Major buyers are currently bidding for scrap in the INR 32,000-32,500/t range.
Outlook
With the financial year-end approaching, the steel market is likely to experience some price volatility in the coming weeks. However, scrap prices are expected to remain within a narrow range, with potential fluctuations of INR +/- 500/t.
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