The HMS scrap Price Trend in India is closely linked to changes in steel production, scrap availability, construction activity, and buying patterns in the wider international market. During Q2 2026, global Heavy Melting Scrap markets moved higher through April and May as steelmakers increased procurement and seasonal supply limitations reduced the amount of readily available scrap.
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Although the supplied market data does not provide a separate India-specific price percentage for Q2 2026, international developments are important for understanding the Indian market because imported scrap, steel demand, freight costs, and global purchasing activity can influence domestic pricing. By June, improved collection rates and softer steel demand reduced buying pressure in several markets, showing that the strong early-quarter movement was beginning to moderate.
HMS Scrap Price Trend in India During Q2 2026
The HMS scrap Price Trend in India needs to be understood through the broader balance between scrap supply and steel demand. Heavy Melting Scrap, commonly referred to as HMS, is an important raw material for steelmakers, particularly those using electric arc furnace and induction-based production routes. When steel mills increase output, their requirement for scrap generally rises as well. When finished steel demand becomes softer, mills may reduce purchasing and rely more heavily on existing inventories.
During Q2 2026, global conditions were generally supportive of scrap prices during the first two months of the quarter. Steel production improved in several markets, construction activity became more active, and manufacturing demand provided additional support. Seasonal supply limitations also meant that collection and availability did not always keep pace with procurement requirements.
For India, these international conditions are relevant even though the supplied data does not state a specific domestic percentage movement. Indian buyers can be affected by changes in imported scrap values, freight, exchange rates, and competition for material from other importing countries.
The quarter therefore provides a useful example of how HMS scrap Prices can respond when steel demand and scrap availability move in different directions.
What Happened to HMS Scrap Prices in Q2 2026?
The global HMS scrap market recorded notable gains during Q2 2026. Prices generally moved higher during April and May as steelmakers increased their purchases and available scrap remained relatively tight.
The Netherlands recorded an increase of approximately 6.49% during the quarter, while the USA recorded an increase of approximately 8.46%. Turkey, an important international scrap market, recorded a quarterly increase of approximately 7.38%.
These figures show that the upward movement was not limited to one market. Similar pressures were visible across different regions, although the exact size of the movement varied according to local steel production, collection rates, exports, inventories, and logistics.
By June, the direction became softer. Netherlands HMS prices declined by approximately 3.16%, USA prices fell by around 1.03%, and Turkey prices decreased by approximately 1.86% during the month.
This change was mainly connected with better scrap availability, sufficient inventories, slower purchasing, and softer downstream steel demand.
Why Did HMS Scrap Prices Rise?
One of the biggest reasons for the early Q2 increase was stronger steel production. Electric arc furnace mills need consistent scrap supplies, so when their production schedules increase, they generally become more active in the scrap market.
Construction activity also played a role. When construction and manufacturing demand improve, steel orders can increase, encouraging mills to secure more raw materials.
At the same time, scrap collection was not always sufficient to meet the stronger buying interest. Seasonal supply constraints and lower collection rates reduced the amount of material available in some regions.
This created a familiar commodity-market situation. Buyers wanted more material at the same time that sellers had less readily available stock. When that happens, prices tend to move higher as mills compete for suitable grades.
Export demand added another layer of support. International buyers competed for cargoes, making it more difficult for domestic consumers to secure material at lower prices.
HMS Scrap Price Chart: What the Q2 Movement Shows
The HMS scrap Price Chart for Q2 2026 can broadly be divided into two phases.
The first phase was April and May, when prices increased as procurement strengthened and supply remained relatively tight. The second phase was June, when improved scrap flows and softer buying caused prices to correct.
This pattern is useful because it shows that a quarterly increase does not necessarily mean prices continued rising throughout the entire period. In fact, the market can reach a higher quarterly average while still experiencing a noticeable correction at the end of the quarter.
For businesses following the HMS scrap Price Trend, looking at monthly movements alongside quarterly figures provides a much clearer picture.
The Q2 chart essentially tells a story of tightening conditions followed by gradual normalization. That transition is important for steelmakers, recyclers, traders, and procurement teams planning their next purchases.
HMS Scrap Price Index and Market Balance
The HMS scrap Price Index reflected the same broad movement seen in physical markets. The index remained supported during the first part of the quarter as steel production and scrap procurement strengthened.
As June approached, however, the market began to rebalance. Scrap collection improved, inventories became more comfortable, and steelmakers became more cautious about purchasing.
A price index is particularly useful in this situation because it helps put individual market movements into a wider context. Instead of looking at one transaction or one location, market participants can use the index to understand the broader direction of pricing.
For the Indian market, watching international HMS benchmarks can also provide useful context. India has its own domestic supply conditions, but imported material and global steel-market developments can influence the overall procurement environment.
India and Global Scrap Market Connections
India's scrap market does not operate in isolation. Domestic collection provides an important supply base, but imported scrap can also influence pricing, particularly when domestic availability becomes tighter or international prices become more competitive.
Changes in global scrap prices can affect Indian buying decisions through landed costs. Freight rates, exchange rates, port expenses, and international offers all contribute to the final cost of imported material.
For example, if international scrap prices rise sharply while freight also becomes expensive, imported HMS may become less attractive. Buyers may then place greater emphasis on domestic sources.
On the other hand, if global prices soften and freight conditions are favorable, imported scrap can become more competitive.
This is why the HMS scrap Price Trend in India should be viewed through both domestic and international factors.
Steel Production and Scrap Demand
Steel production is one of the most important factors affecting HMS scrap demand. A steel mill cannot simply increase output without securing sufficient raw material.
During Q2 2026, stronger steel production in several markets encouraged mills to increase scrap purchases. Electric arc furnace producers were particularly important because scrap is a major feedstock for this production route.
When finished steel orders are strong, mills can justify paying more for scrap. But when steel demand weakens, mills tend to become more selective.
This relationship explains why the market softened in June. Improved scrap availability came at the same time as more cautious steel purchasing.
For Indian market participants, monitoring domestic steel production and construction demand can therefore provide useful clues about future HMS scrap Prices.
Supply and Scrap Collection
Supply is just as important as demand. Scrap comes from several sources, including old buildings, vehicles, machinery, industrial equipment, and manufacturing waste.
Collection rates can change depending on economic activity, seasonal conditions, and price expectations. When prices rise, sellers may release more material because the higher values provide an incentive to collect and process scrap.
That can eventually create a balancing effect.
This appeared to happen toward the end of Q2 2026. After prices increased through April and May, improved scrap inflows helped reduce the earlier tightness.
The result was a more comfortable supply environment in June. Buyers no longer needed to compete as aggressively, and sellers faced greater competition for transactions.
Netherlands HMS Scrap Market
The Netherlands recorded a 6.49% increase in its HMS 1&2 (80:20) price during Q2 2026. Improving steel production and stronger procurement from electric arc furnace mills supported the increase.
Regional scrap availability was relatively tight during April and May because collection rates were lower and competition for feedstock increased across Northwest Europe. Higher finished steel orders and stronger export demand also encouraged mills to purchase more actively.
However, the situation changed by June. Improved scrap inflows, weaker export demand, and more cautious mill purchasing reduced pressure on the market.
As a result, Netherlands HMS prices declined by approximately 3.16% in June.
USA HMS Scrap Market
The USA recorded an approximately 8.46% increase in HMS scrap prices during Q2 2026. Strong domestic steel production was a key factor supporting the market.
Manufacturing and construction activity improved during the quarter, helping strengthen finished steel demand. EAF mills responded by securing additional scrap volumes.
At the same time, obsolete scrap generation remained constrained, while collection, transportation, and processing costs increased. These factors tightened the availability of suitable material.
By June, however, better scrap flows and more comfortable inventories reduced the urgency among buyers. Softer export demand also contributed to the approximately 1.03% monthly decline.
Turkey HMS Scrap Market
Turkey recorded an approximately 7.38% increase in HMS 1&2 (80:20) prices during Q2 2026. Strong purchasing from steel mills and demand from the country's export-oriented steel sector supported the increase.
Limited availability of higher-quality ferrous scrap added pressure to the market. International offers, freight expenses, and replacement costs also influenced buying decisions.
As the quarter progressed, improved collection volumes and more cautious mill procurement helped ease market tightness.
Turkey's HMS prices therefore declined by approximately 1.86% in June, showing that the market was moving toward greater balance.
HMS Scrap Price Forecast
The HMS scrap Price Forecast for the coming period will depend largely on the relationship between steel demand and scrap availability.
If steel production remains strong and construction activity continues to support finished steel demand, mills may continue to require significant scrap volumes. That could provide a floor for prices.
However, if scrap collection improves while steel demand becomes softer, buyers may become more selective. Increased inventories could also reduce the need for urgent procurement.
For India, domestic collection, imported scrap offers, freight costs, steel production, and construction demand should all be monitored together.
A simple upward or downward prediction would overlook how quickly the scrap market can change. The Q2 2026 experience itself shows that prices can rise strongly during one part of a quarter and then begin correcting when supply improves.
What to Watch in India
Indian market participants should keep an eye on several practical indicators. Domestic scrap availability is one of the most important because stronger collection can reduce dependence on imported material.
Steel mill operating rates also matter. Higher production usually means stronger raw-material requirements, while production cuts can reduce procurement.
Finished steel demand from construction and manufacturing is another useful indicator. When buyers of steel become cautious, mills can also become more conservative in their scrap purchasing.
Imported scrap offers are equally important. Changes in global HMS benchmarks, freight rates, and currency movements can alter the economics of imported material.
Together, these factors provide a more complete picture of the HMS scrap Price Trend in India.
About Price Watch™
Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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