Indian ferrous scrap market sluggish as Middle East war makes imports costlier in Commodity News 03/04/2026 The Indian ferrous scrap import market has seen prices of key grades improve steadily through the first quarter of 2026, after a feeble end to 2025, supported by risks associated with the war in the Middle East and some sporadic improvement in demand, market participants told Platts, part of S&P Global Energy. However, market activity has remained largely sluggish for most of this period, as Indian buyers were held back by concerns over volatility in a rapidly weakening exchange rate, uncertainty over domestic downstream demand, and freight risks linked to the ongoing Middle East conflict since it began in late February. The Indian rupee sank to an all-time low of Rupees 94.74/$1 on March 27, according to Platts data, which made imports more expensive for Indian buyers, and has recovered only marginally since then. The adequate availability of domestic scrap and direct-reduced iron, a less expensive alternative feedstock, has also allowed mills to limit their reliance on imports. However, the use of Indian domestic DRI hit a ceiling earlier this year. In December 2025, Indian imported containerized shredded scrap prices averaged $345.95/metric ton CFR Nhava Sheva. In January and February 2026, prices averaged $355.90/mt CFR Nhava Sheva and $365.08/mt CFR Nhava Sheva, respectively, supported by some positive demand sentiment. In the wake of the war, prices rose to an average of $369.32/mt CFR Nhava Sheva in March, their best month since April 2025. Tradable values and reported deal levels for imported containerized HMS 1/2 (80:20) rose from $320-$345/mt CFR Nhava Sheva in the first two months of 2026 before the war to $345-$370/mt CFR Nhava Sheva in March. Domestic DRI prices have risen significantly in 2026. Prices rose from an average of Rupees 23,320/mt ex-works Raipur in December 2025 to Rupees 24,590/mt ex-works Raipur in January this year. In February, domestic DRI jumped to an average of Rupees 26,781/mt ex-works Raipur, its best month since October 2024, and remained relatively unchanged at an average of Rupees 26,748/mt ex-works Raipur in March. Middle East war hits key Indian imports Iran restricted the movement of freight through the Strait of Hormuz after the conflict began, reducing the supply of several goods to India, including several steelmaking raw materials and liquefied petroleum gas. As a result, the Indian government has moved to prioritize domestic and other essential uses of LPG over industrial production, amid continuous negotiations with Iran to allow Indian shipments of the fuel. Market sources have told Platts that some producers may need to cut production due to reduced LPG availability for industrial use. Historically, March is a relatively good month for demand, but this year that trend has been broken with Indian buyers choosing to be conservative due to the war, leading to very few import deals for ferrous scrap, a trader said. Sellers look elsewhere Indian buyers, hamstrung by a floundering exchange rate and slow downstream demand, cannot keep up with other import markets willing to pay higher rates, bringing imports to a near standstill, participants said. The more attractive import markets for sellers include Turkey, which is the world’s largest importer of scrap, and India’s neighbors, Pakistan and Bangladesh. “Why even bother offering to India?” a second trader said. Offers from various origins