In mid-September 2025, the Shredded Scrap market in India was unreasonably quiet, with little trading activity due to weak demand for steel, seasonal logistical issues, and currency risk, which kept traders on the sidelines. UK/EU-origin shredded scrap prices were reported at $ 363/t-₹364/t CFR, unchanged since last week. Bids for Containerised Shredded Scrap ranged between $305-355/t CFR when sellers maintained offers between $365-370/t CFR, continued to be a persistent bid-offer gap that stalled all trades. There were some minor reported trades such as African HMS at $340/t CFR and Australian shredded at $364–366/t CFR, but overall volumes were too low to invoke any market signals. Buyers remain cautious amid falling finished steel prices, continued declining construction activities, and delays in movement in the supply chain due to continuing monsoon disruptions. Furthermore, the rupee's volatility has increased landed costs, thus complicating import decisions for scrap buyers.

Outlook:

The market is not expected to shift significantly until after the monsoon, when logistical conditions are likely to return to normal, and construction activity will start to ramp up. Mills are only likely to place larger scrap bookings again when steel demand improves and the currency stabilizes. Until then, we expect that importers will lean on domestic scrap to a greater extent, especially in southern hubs such as Chennai, where local prices appear to have made small gains. The near-term market outlook is likely to continue with low import volumes and the general approach of prudence in regional procurement strategies and buying behaviour. Price recovery will continue to remain contingent on improved demand after the monsoon and the narrowing of the bid-offer gap.