- Slow inflow of industrial scrap tightens supply
- Demand from auto, agri-machinery sectors supporting operations
BigMint’s domestic plate end-cutting scrap index tracking the major foundry market of Kolhapur, Maharashtra, increased by INR 400/t w-o-w to INR 36,000/tonne (t) DAP on 13 November 2025.
Due to the continued tightness in scrap collection across major foundry hubs, ferrous scrap prices remained on the higher side this week. Limited inflows of local industrial scrap and slower arrivals from collection centres kept supply constrained.
Demand overview
Demand from the automotive sector particularly from tractor manufacturers and agricultural component producers remained strong, providing steady order inflows to foundries. This sustained demand has helped foundry mills operate at comfortable production levels, supporting overall market stability despite tight scrap availability.
Mills in Kolhapur had reduced their production capacity by 30-40% last month. However, with a view to the current demand scenario, mills are operating at 80-90% capacity.
Outlook
The ferrous scrap market is expected to remain stable to firm in the near term, supported by steady demand from foundries serving the auto and agri-machinery sectors. Tight availability may limit any major price correction, though improved inflows or softer casting demand could see prices easing slightly. Overall sentiment remains positive, with foundries running comfortably and traders cautiously optimistic.
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