- Need-based buying keeps Chennai scrap range-bound
- Billet prices fall INR 250/t w-o-w, rebar remains stable
HMS (80:20) scrap prices in Chennai remained unchanged at INR 30,800/t, with no movement observed on either a d-o-d or w-o-w basis, according to BigMint’s latest assessment. In the semi-finished steel segment, billet prices held steady d-o-d at INR 42,000/t, although they declined by INR 250/t w-o-w, indicating mild weakness in downstream demand. Meanwhile, rebar prices remained stable at INR 46,000/t on both d-o-d and w-o-w comparisons.
Overall, the Chennai market reflected mixed sentiment, with stable scrap and finished steel prices offset by softer billet values. Market participants continued to report moderate finished steel demand, while liquidity constraints kept procurement and trading activity largely cautious and requirement-based.
Imported, domestic price trends
According to market participants, Australia-origin shredded scrap was offered at $365-370/t CFR Chennai, while HMS (80:20) was quoted at $325-330/t CFR. Import buying activity remained subdued, with buyers quoting bids approximately $15-20/t below prevailing offer levels, reflecting cautious market sentiment. Despite continued tightness in domestic scrap availability, mills showed limited interest in imported cargoes due to the significant bid-offer gap and weak demand in the finished steel segment. Consequently, procurement remained largely requirement based, restricting fresh import bookings.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 30,500-31,000/t for spot transactions, while credit-term deals were concluded at INR 31,000-31,500/t. Overall, trading activity remained concentrated within the INR 30,500-31,500/t range, indicating balanced supply conditions despite subdued downstream steel demand.
Market participants reported that mills continued to procure scrap on a need-based basis, as cautious buying sentiment persisted amid moderate steel demand. Transaction prices were primarily influenced by payment terms, procurement volumes, and mill-specific requirements, limiting any significant movement in domestic scrap prices.
Buyer-supplier sentiments
According to a mill representative, recent trading activity in the steel sector has remained sluggish, with weak demand observed across both infrastructure project orders and retail sales. The slowdown has significantly reduced finished steel offtake, resulting in rising inventory levels at steel mills. As inventories continue to accumulate, producers are increasingly focusing on stock liquidation and are exercising caution in production planning and raw material procurement.
The representative added that unless demand improves meaningfully in the coming weeks, the steel market is likely to remain under pressure, with the possibility of further price corrections across the finished steel segment.
A scrap supplier shared with BigMint that HMS (80:20) scrap prices are currently in the INR 30,500-31,500/t range, with variations depending on payment terms and mill-specific requirements. The supplier noted that despite the recent decline in billet prices, scrap prices have not witnessed a similar correction, as buyers have largely maintained their procurement prices. Continued tightness in domestic scrap availability and the absence of aggressive selling have supported prevailing price levels, preventing any sharp decline in scrap prices despite softer sentiment in the semi-finished steel segment.
Regional comparison
In the western India-based Jalna market, HMS (80:20) scrap prices declined marginally by INR 100/t d-o-d to INR 31,300/t, while billet and rebar prices held steady at INR 40,000/t and INR 43,500/t, respectively. Market participants reported moderate trade volumes, with buying activity remaining largely balanced. Scrap arrivals at mills continued to match production requirements, maintaining comfortable supply conditions. Consequently, procurement remained requirement-based, with no significant shift in buying sentiment despite the minor correction in scrap prices.
Outlook
The near-term outlook for the Chennai scrap market remains cautiously stable, supported by constrained domestic scrap availability and subdued import bookings. However, moderate demand in the finished steel segment and ongoing liquidity constraints are expected to keep buying activity measured. Mills are likely to continue procuring material only against immediate production requirements. Consequently, HMS (80:20) scrap prices are expected to remain largely range-bound, with movements limited to INR +/- 200-500/t.
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