India: Foundry ferrous scrap prices strengthen in Kolkata, remain stable in Kolhapur

• Mixed trends prevail in foundry ferrous scrap market
• Steady auto, agri sector demand keeps market sentiment stable

Foundry scrap prices in the Kolkata cluster increased by INR 400-600/t w-o-w supported by healthy demand for semis. However, prices in regions such as Kolhapur and other foundry clusters remained largely unchanged, with only negligible adjustments reported.

In key markets, except Kolkata and regions like Kolhapur and Coimbatore, foundry-grade scrap traded within a narrow band similar to previous weeks. Mills and recyclers adopted a conservative purchasing approach, sourcing material only as required, as finished casting orders remained stable but not particularly strong. According to traders, supply is adequate but not excessive which is preventing any downward pressure on prices.

Weekly price movement

Eastern region (Kolkata): Plate cutting scrap traded at INR 34,800-35,200/t DAP Kolkata on an immediate payment basis, up by INR 400–600/t on a w-o-w.

Western region (Kolhapur, Maharashtra): Plate cutting scrap was heard at INR 35,800-36,200/t, unchanged from last week.
CR busheling (low-manganese) held stable within the range INR 39,000-39,500/t, with limited high-grade material available.
Traders continued to report moderate inflow from local yards.

Demand overview

Orders from the tractor and agricultural machinery sectors are healthy but industry experts believe that finished casting prices will remain stable for the next one to two weeks. Foundry operations are running at comfortable levels. Automotive casting orders also remain steady, helping mills maintain consistent production schedules. Market participants noted that foundries are currently buying scrap only on a requirement basis, avoiding bulk purchases due to stable finished casting prices.

Outlook

In the near term, the foundry scrap market is expected to remain stable, with no sharp price movements expected. Demand from the auto and agri-component segments is expected to remain healthy, supporting stability. If scrap inflows improve further, minor corrections cannot be ruled out, but any significant downside remains unlikely unless demand weakens.