India: Foundry scrap market shows mixed trend; busheling grades gain on tight availability

• Plate scrap prices in Kolkata dip amid weak demand, ample supply
• Processed scrap demand improves amid tight supply from OEM auctions

Ferrous scrap prices across India’s major foundry hubs displayed a mixed trend w-o-w on 12 May 2026, with processed grades such as CR busheling witnessing price increases amid tightening availability, while foundry plate scrap largely remained stable across key regions. Market sentiment showed slight improvement compared to the previous week, supported by better procurement activity in select auto-linked segments and continued supply-side constraints.

Processed scrap availability tightens; mills continue cautious buying

India’s foundry sector continues to operate under margin pressure as higher input costs and limited scrap availability persist. However, compared to the previous week, the market witnessed relatively improved buying interest in processed grades, particularly CR busheling, driven by tight supply from OEM auctions and steady requirement from secondary steel and casting units.

Suppliers continued to face multiple operational challenges, including limited generation of processed scrap, elevated OEM procurement prices, labour shortages, and logistics and vehicle availability issues. Despite these constraints, foundry plate prices across most regions remained stable, indicating that buyers are continuing to procure cautiously based on immediate production requirements rather than aggressive inventory stocking.

Region-wise scenario

Western India (Kolhapur)

Foundry plate scrap prices remained unchanged at INR 40,700/t.
CR busheling prices increased by INR 1,000/t to INR 44,500/t.

The sharp rise in busheling prices was mainly supported by tight material availability and improved procurement from engineering and casting units.

South India

Coimbatore

Foundry plate scrap prices remained stable at INR 43,500/t.
CR busheling prices increased by INR 200/t to INR 45,700/t.

Chennai

Foundry plate scrap prices remained unchanged at INR 42,000/t.
CR busheling prices rose by INR 500/t to INR 44,500/t.

The improvement in busheling prices reflects tighter processed scrap supply and selective buying support from auto-component and casting manufacturers. Stable plate scrap prices indicate balanced demand-supply conditions.

East India (Kolkata)

Foundry plate scrap prices declined by INR 300/t to INR 39,000/t.

The slight correction was attributed to slower procurement from local foundries and sufficient material availability in the region.

Outlook

The market sentiment has slightly improved compared to the previous week, particularly for processed scrap grades. Tight availability of CR busheling and continued supply-side constraints are supporting prices despite cautious buying from foundries.

However, overall demand recovery remains gradual, as foundries continue to face pressure from elevated operating costs and delayed price pass-through to OEMs and engineering buyers. Market participants expect prices to remain largely stable in the near term, with processed grades likely to stay firm due to constrained supply.