India: Foundry scrap market remains under pressure; plate scrap prices weaken further

• Plate scrap prices soften across regions despite tight supply
• CR busheling stays firm amid limited processed scrap availability

Ferrous scrap prices across India’s major foundry hubs continued to display a mixed trend w-o-w on 19 May 2026. Foundry plate scrap prices corrected across regions due to subdued procurement activity and cautious buying sentiment, while CR busheling prices remained firm in select markets in south India amid continued tight availability of processed scrap.

Market participants noted that although plate cutting scrap availability is not very comfortable in the market, prices softened this week after remaining elevated in previous weeks, reducing fresh buying interest from foundries and casting units. Buyers continued to maintain a need-based procurement strategy amid weak finished casting demand and margin pressure.

Supply remains tight; foundries continue cautious buying

India’s foundry sector continues to face operational challenges due to slow demand recovery from engineering and auto-component sectors, elevated conversion costs, labour shortages, and inconsistent scrap generation from OEM channels.

Processed scrap grades, especially CR busheling, continued to witness supply tightness in several regions due to lower generation from auto and manufacturing sectors and limited auction availability. This supported prices in select southern markets despite cautious buying activity by the secondary steel and casting units.

Meanwhile, foundry plate scrap prices corrected in most regions as buyers avoided aggressive inventory buildup and focused primarily on immediate production requirements. Suppliers also reported slower lifting activity compared to previous weeks.

Region-wise scenario

Western India (Kolhapur)

Foundry plate scrap prices declined by INR 1,000/t to INR 39,700/t.
CR busheling prices decreased by INR 500/t to INR 44,000/t.

The decline was mainly attributed to sluggish procurement from local foundries and reduced buying activity after previously elevated price levels.

South India

Coimbatore

Foundry plate scrap prices declined by INR 400/t to INR 43,100/t.
CR busheling prices increased by INR 600/t to INR 46,300/t.

The rise in busheling prices was supported by tight processed scrap availability and steady procurement from auto-linked and engineering units.

Chennai

Foundry plate scrap prices declined by INR 700/t to INR 41,300/t.
CR busheling prices remained stable at INR 44,500/t.

Although plate cutting scrap availability remained limited, cautious procurement from foundries and slower buying activity kept plate scrap prices under pressure. Stable busheling prices reflected balanced demand-supply conditions in the processed scrap segment.

East India (Kolkata)

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

The marginal improvement was supported by selective procurement from local foundries and slightly improved regional buying sentiment.

Outlook

Market sentiment in the foundry scrap segment remains cautious amid slow recovery in finished casting demand and continued pressure on margins. Plate scrap prices may continue to witness limited correction in regions where buying activity remains weak despite relatively tight availability.

However, prices of processed scrap grades such as CR busheling are expected to remain relatively firm in the near term due to constrained generation from OEM and industrial channels. Market participants are likely to continue cautious procurement while closely monitoring demand recovery from engineering, automobile, and casting sectors.