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India’s scrap steel purchases have plummeted, weighed down by shrinking demand for finished steel products, labor shortages, and the depreciation of the rupee.

Category: Blog

Time:2026-05-18

As of the week ending May 15, India’s scrap steel purchases declined sharply, driven by weakening demand for finished steel products, labor shortages, and the continued depreciation of the rupee. With high import scrap prices and persistent exchange-rate volatility squeezing margins, Indian steelmakers continue to favor domestic scrap and direct reduced iron. This week, the CFR Navasheva index for shredded scrap stood at $393.96 per tonne, down from the previous week; the CFR Navasheva price assessment for HMS 1&2 (80:20) was $360–$375 per tonne, with the lower end of the range trending downward.

　　Labor shortages are severely disrupting steel production in many regions, with numerous mills cutting output due to staffing constraints. According to industry sources, labor shortages are creating challenges across the entire production chain, from scrap sorting and classification to stacking and overall operations. The situation is particularly acute in southern India, where, amid labor shortages and the peak fruit‑ripening season, daily wages have surged, making production increasingly difficult.

　　Weak demand for finished steel and the continued depreciation of the rupee are continuing to weigh on imports of scrap steel. Industry sources report that the market began to weaken in mid-April and has since plunged sharply; billet prices have fallen by roughly 6,000–7,000 rupees per ton over the past 30 consecutive days, now standing at around 44,000 rupees per ton. Meanwhile, the rupee has slipped below 96 to the U.S. dollar. Buyers are seeking to lock in scrap steel at 35,000 rupees per ton or lower.

　　Market activity in Pakistan remains subdued, with buyers adopting a more cautious stance amid weak demand for finished steel products and declining domestic steel prices. Meanwhile, overseas suppliers are maintaining firm price quotes due to persistently high global scrap prices. In Bangladesh, local mills have largely stayed out of the market after securing several deep-sea shipments in recent weeks, with CFR quotes for deep-sea HMS 1&2 (80:20) at $415–$417 per tonne and offers around $410–$412 per tonne. This week, the assessed import CFR price for deep-sea HMS 1&2 (80:20) into Bangladesh stands at $410–$415 per tonne, unchanged from last week. On the container front, Australian HMS 1&2 (80:20) is trading at $390–$395 per tonne, while South American grades are fetching $380–$385 per tonne.

Keywords: India’s scrap steel purchases have plummeted, weighed down by shrinking demand for finished steel products, labor shortages, and the depreciation of the rupee.

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India’s scrap steel purchases have plummeted, weighed down by shrinking demand for finished steel products, labor shortages, and the depreciation of the rupee.

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