- Prices in south, west India gain on stronger scrap demand
- Northern prices remain steady amid inventory pressure
India’s CR busheling scrap market showed mixed regional price movements in February 2026, with stronger demand in western and southern regions pushing prices higher, while northern markets remained largely stable amid subdued finished steel demand.
Western and southern markets strengthen
Monthly average CR busheling scrap prices in western India rose by around INR 1,000/t m-o-m in February, supported by improved procurement by secondary steel mills and tighter prompt scrap availability. Southern markets recorded a sharper increase of about INR 1,750/t, reflecting stronger buying interest and higher auction realisations.
Auction results also reflected this bullish sentiment. Bids in western and southern regions increased by 2-4% m-o-m, translating to gains of around INR 1,300-1,500/t, as mills actively secured feedstock to support stable production levels.
Northern markets remain under pressure
In contrast, prices in the northern region, including Mandi Gobindgarh and Ludhiana, remained largely unchanged m-o-m. Market participants attributed the muted trend to inventory pressure, excess scrap arrivals from neighbouring states, and below-moderate finished steel demand in the secondary market during January-February.
Auction outcomes mirrored the softer sentiment. Bids in the northern zone declined by 2-6% m-o-m, equivalent to a correction of around INR 500-2,200/t, indicating cautious procurement strategies by mills.
Domestic scrap holds advantage over imports
Imported CR busheling scrap delivered to Kandla and Mundra ports was assessed at around $390-395/t CFR, equivalent to INR 36,418/t. After factoring in duties and inland freight, landed costs in Ludhiana and Mandi Gobindgarh stood near INR 40,118/t.
In comparison, domestic busheling scrap prices were heard at around INR 38,800-39,300/t DAP, maintaining a clear discount to imported material. This price advantage discouraged fresh import bookings, with mills preferring local scrap.
A mill owner noted that Brazil-origin coated busheling scrap was offered at $380-385/t during the final week of February.
HRC CRC market trend Feb’26
M-o-m, trade-level HRC prices increased by INR 1,750/t to INR 53,750/ in February 2026 compared with INR 52,000/t in January 2026. Meanwhile, CRC prices rose by INR 1,900/t to INR 59,700/t from INR 57,800/t in the same period. Trade level prices rose m-o-m, reflecting mill price hikes and elevated raw material costs.
Foundry scrap market trends
Demand from automotive components, tractor parts, and engineering casting units remained stable in February, providing consistent support to scrap consumption. Market participants indicated that foundries catering to commercial vehicle and agricultural equipment manufacturers continued to operate at steady capacity utilisation levels, keeping raw material procurement steady. However, market sentiment remained mixed, with buying activity largely driven by immediate requirements rather than aggressive stocking.
Upcoming scrap auctions
Outlook
Busheling scrap prices are poised to rise in March if secondary steel market demand strengthens. March and April CR/HR coil price hike announcements would further boost values. Auto sector demand remains a major price catalyst. Ongoing geopolitical tensions, driving oil and gas price upticks, will also automatically lift steel prices across the board.
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