en.Wedoany.com Reported - In the Chennai market, India, HMS (80:20) scrap steel prices remained largely stable week-on-week, quoted at INR 31,800-32,200 per ton, reflecting balanced domestic supply and cautious steel mill procurement. In the semi-finished segment, billet prices rose by approximately INR 200 per ton week-on-week to INR 41,200 per ton, benefiting from a slight increase in downstream buyer activity and improved market sentiment.
In the finished steel segment, rebar prices fell by about INR 200 per ton week-on-week to INR 46,000 per ton, primarily due to weak demand from end-user industries and project sectors. Despite stable raw material prices, sluggish demand continues to weigh on market sentiment.
Market participants reported that shredded scrap steel from Australian sources was quoted at USD 385-395 per ton (CFR Chennai), while HMS (80:20) was quoted at USD 365-370 per ton (CFR). Despite a persistent shortage of high-quality domestic scrap, buyer interest in imported materials remained subdued. BigMint assessments indicated that buyers continued to bid approximately USD 15-25 per ton below current offers, reflecting cautious sentiment and limited new order demand. Additionally, domestic scrap remains more economical than imported materials, curbing significant import activity in the Chennai market.
In the domestic market, spot payment transactions for HMS (80:20) scrap steel were quoted at INR 31,800-32,200 per ton, while credit-based transactions closed at slightly higher prices depending on payment terms and volumes. Overall, trading activity was concentrated in the INR 31,800-32,200 per ton range, reflecting stable supply-demand fundamentals. Price differences were primarily driven by payment terms, grade specifications, and specific mill procurement needs. Against the backdrop of weak finished steel demand, market participants continued to adopt a procurement-on-demand strategy.
According to a mill source, billet demand improved slightly over the past week, with a modest increase in buyer activity. However, overall consumption remained below expectations, and mills continued to closely monitor inventory levels and production plans. On the raw material front, scrap supply remained relatively tight, supporting domestic scrap prices. Imported scrap remained unviable at current quotation levels, limiting overseas orders, with buyers focusing on domestic sourcing channels.
In the Jalna market in western India, HMS (80:20) scrap steel prices held steady at around INR 33,300-33,500 per ton. Billet and rebar prices edged down week-on-week due to weak buyer interest and sluggish downstream consumer demand. According to market sources, several mills have implemented production cuts in recent weeks, helping to balance inventories. Meanwhile, despite demand being below seasonal levels, moderate scrap supply and stable raw material prices supported procurement activity.
In the short term, the Chennai scrap market is expected to remain range-bound. Although billet prices have improved, demand recovery in the finished steel segment remains slow. Stable domestic scrap supply and the limited economic viability of imported scrap due to high landed costs may provide price support. Mills are expected to continue procurement on demand while closely monitoring finished steel demand and conversion economics. Scrap prices are likely to remain narrowly stable, with short-term fluctuations expected to be limited to +/- INR 200-300 per ton.
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