Rebar prices rise by INR 700/t w-o-w
Improved trade in steel drives scrap offers
According to BigMint’s latest assessment, HMS (80:20) scrap prices in Chennai increased w-o-w by INR 300/t, reaching INR 30,800/t, while inching up by INR 100/t d-o-d. Billet prices held steady both d-o-d and w-o-w, assessed at INR 44,500/t. Meanwhile, rebar prices increased by INR 700/t to INR 48,700/t on a w-o-w basis, though they remained unchanged d-o-d. This increase in trade activity, particularly in semi-finished and finished steel, indicates a positive trend in the market.
Imported and domestic price trends
According to a scrap trader, imported shredded scrap offers are currently at $390-400/t, with buyers bidding between $385-386/t. HMS 80:20 scrap is priced at $365-370/t. However, despite these competitive pricing offers, the demand for imported scrap remains subdued, as buyers are increasingly turning to cheaper domestic options.
Domestic HMS (80:20) scrap prices are currently ranging between INR 30,500-31,000/t for buyers making immediate payments. For transactions with extended credit terms, prices have risen to INR 31,000-31,700/t. The majority of offers fall within the INR 30,500-31,700/t range, with most deals being concluded at these levels, reflecting the current market pricing structure.
Buyer-supplier sentiments
A mill representative informed BigMint, “Prices for semi-finished steel have been supported by rising demand, particularly for rebar. Mills report being at least 10 to 15 days overbooked and are cautious about taking on large orders, hoping that prices will increase further, which would improve their profit margins and help recover from previous losses. As the new fiscal year begins, several infrastructure projects are ramping up leading to bulk bookings. However, sponge iron consumption remains slow, partly due to the relatively cheaper access to melting scrap despite favourable realization”.
Another mill representative shared, the steel market in Chennai has shown positive signs with a significant increase in demand and inquiries for rebar in recent days. Advanced bookings are contributing to the upward momentum, reflecting strong market confidence. Production levels remain strong with 24-hour operations driven by healthy demand across the sector. Scrap supply remains tight, which is supporting prices. Current HMS 80:20 scrap purchase prices are INR 31,000/t for immediate payment and INR 31,500/t for extended payment terms.
A scrap supplier reported that the price range for HMS 80:20 scrap is currently between INR 30,500-31,500/t, depending on payment terms. The increasing trade activity in finished steel has positively influenced prices. Domestic scrap offers remain more affordable than imported scrap, encouraging mills to prioritise domestic material over imports.
Regional comparison
Billet prices in the western India-based Jalna market rose by INR 400/t, reaching INR 44,500/t, while rebar prices increased by INR 300/t to INR 49,900/t. HMS (80:20) scrap prices also saw an uptick, rising by INR 200/t to INR 33,500/t. Today’s trading session reflected increased activity in both semi-finished and finished steel, indicating a more active market. Additionally, scrap arrivals at mills appear to be in line with mills’ requirements at the current price level.
Outlook
Driven by increased demand and strong trade inquiries for finished steel, market participants remain optimistic about the steel market’s performance in the coming days. This positive sentiment in the steel sector is expected to support continued upward movement in scrap prices, further bolstering market confidence.
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