- Scrap holds firm, steel sees mild gains
- Billet and rebar offers rise by INR 200/t w-o-w
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai remained stable at INR 28,000/t, with no change on a d-o-d or w-o-w basis. In contrast, billet and rebar prices increased by INR 200/t, rising to INR 38,500/t and INR 43,200/t, respectively, reflecting uniform gains across both daily and weekly evaluations. Overall, the market displayed a mixed tone, characterised by stable trading patterns and narrow price volatility.
Imported, domestic market trends
Imported shredded scrap offers were heard at $348-350/t CFR Chennai, while buyers placed bids slightly lower at $340-342/t. HMS (80:20) scrap was quoted at $325-330/t, with bids in the range of $316-320/t. Market participants also reported a deal for Africa-origin HMS (80:20) concluded at $320/t CFR Chennai, along with another transaction for Ireland-origin PNS finalized at $341/t CFR Chennai.
In the domestic market, HMS (80:20) scrap prices were quoted at INR 28,000-28,500/t for immediate payment transactions, while extended credit terms attracted slightly higher offers of INR 28,500-29,000/t. The market maintained a stable tone, with sentiment shaped largely by liquidity considerations. Buyers and suppliers remained measured in their approach, balancing trade volumes against prevailing payment and financing conditions.
Buyer-supplier sentiments
A mill representative indicated that sponge iron prices are currently on the higher side, largely driven by the absence of strong competitive pressure in the Chennai market and firm price support from neighboring hubs like Bellary (Karnataka). Although one of the major billet suppliers in the merchant market has recently undertaken a maintenance shutdown, billet availability in the region continues to remain steady.
Another market participant noted that profit margins in billet production have narrowed, prompting mills to convert more material into finished steel instead of selling billets in the merchant market. Billet buyers are submitting lower bids due to weak demand and subdued pricing in the rebar segment. However, some sources indicated a slight improvement in rebar demand from the southern Tamil Nadu region.
A prominent scrap supplier reported HMS (80:20) scrap traded in the INR 28,000-29,000/t range, with price realizations dependent on payment terms. Persistent liquidity challenges combined with monsoon-related disruptions have kept overall sentiment subdued, resulting in restrained trading. Rebar stocks at mills remain above 20 days, adding pressure on trade momentum across the region.
Regional comparison
In the western India-based Jalna market, billet, rebar, and HMS (80:20) scrap prices remained unchanged at INR 37,000/t, INR 42,200/t, and INR 29,000/t, respectively. Market sources indicated an improvement in finished steel trade activity in recent sessions. Steady scrap inflows continue to support mill operations, allowing producers to maintain output in line with stable regional demand and firm market sentiment.
Outlook
Market participants foresee stable domestic scrap prices in the coming days, supported by firm supplier offers and higher imported scrap and sponge iron prices. Any near-term movement is expected to be modest, within INR 200-500/t, keeping overall sentiment steady and range-bound.
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