- Semi-finished steel rises by INR 500/t w-o-w
- Liquidity crunch still persists in market
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai have remained stable at INR 30,400/t, with no changes observed on a d-o-d or w-o-w basis. Billet prices saw an increase of INR 500/t w-o-w, now at INR 42,500/t, while they rose by INR 200/t d-o-d. Rebar prices also increased by INR 200/t, reaching INR 46,200/t, both on a day-on-day and w-o-w basis. Trade activity for semi-finished and finished steel has improved in recent days, indicating a positive shift in the market.
Imported and domestic price trends
Shredded scrap from the UK is being offered at $375-380/t CFR Chennai, while HMS 80:20 is priced at $350-355/t. Despite these prices, demand for imported scrap has been weak, as many buyers are opting for more affordable domestic scrap options. The lower pricing of domestic scrap makes it a more attractive choice, reducing the overall demand for overseas scrap.
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 30,000-30,500/t range, with the majority of deals being concluded at these levels, indicating a stable market.
Buyer-supplier sentiments
According to a mill representative, demand for semi-finished and finished steel has improved in recent days, driven by strong demand from the construction industry. The market may continue to see positive movement in the coming days. However, with the Holi festival approaching and the end of the financial year, trade activities are expected to slow down after mid-March.
A scrap supplier notes that the price range for HMS 80:20 scrap is currently between INR 30,000-31,000/t, influenced by payment terms. The market continues to grapple with liquidity issues, with many major mills procuring scrap on 10-20 day credit terms. However, there has been a noticeable rise in trades for finished steel, driving improvements in semi-finished and finished steel prices. This could lead to potential upward movement in scrap prices in the near future.
Regional comparison
In the western India-based Jalna market, billet prices rose by INR 300/t d-o-d, reaching INR 42,300/t, while rebar prices increased by INR 600/t d-o-d, now at INR 48,100/t. HMS 80:20 scrap prices also saw a rise, up by INR 200/t d-o-d to INR 32,100/t. There has been a noticeable increase in trade activity, especially in the semi-finished and finished steel sectors, indicating improving market dynamics.
Outlook
Market participants anticipate positive movement in the steel market in the coming days, fueled by strong trade inquiries for finished steel. In contrast, scrap prices are expected to remain stable in the near term, with fluctuations of INR +/- 500/t.
Leave a Reply