- Bids fall by INR 400-500/t amid cautious buying from northern mills
- CR busheling loose scrap prices in Ludhiana decline by 500/t m-o-m
A leading four-wheeler automaker’s auction for 5,000 t of low-manganese CR busheling scrap from its Gurgaon, Haryana plant on 27 July drew bids at INR 36,900/t-37,100/t ex-works, down by about INR 400-500/t from the 1 July auction, which had closed at INR 37,300/t-37,500/t ex-works. Slow demand for finished steel has kept scrap buying cautious across the northern region. A Ludhiana-based mill reportedly secured around 2,000 t in the latest round.
The auction outcome comes against a backdrop of subdued imported scrap procurement, which has pushed northern mills to participate directly in OEM auctions to ensure raw material coverage. In the region, the scrap market has remained slow but stable, supported only marginally by pre-monsoon bookings, while weak finished steel offtake and cautious buying continue to cap any sharp price movement.
Price trend
As per BigMint price assessment, CR busheling loose scrap in Ludhiana was at INR 38,900-39,100/t DAP as on 28 July, while bundle scrap was priced about INR 300/t-500/t higher than loose material. M-o-m, prices declined by around 500/t in the region. Market participants note that Ludhiana alloy steel makers largely depend on CR busheling scrap sourced from Delhi and Haryana, mainly because these regions generate OEM-linked scrap consistently.
In the Jalna market, CR busheling loose scrap prices increased by INR 500/t w-o-w to INR 34,150/t DAP, primarily due to the current uptrend in steel prices in the region. In Chennai, busheling prices remained stable w-o-w with moderate steel market sentiments.
Upcoming scrap auctions
About foundry scrap market
Foundry scrap market showed mixed trends w-o-w across regions. Demand from the automotive and engineering casting sectors remained steady, but buying interest was mostly need based, which kept prices largely stable.
In Kolhapur, market sentiment stayed stable w-o-w, with foundry plate (4-8 mm) unchanged at INR 38,200/t and low Mn CR-busheling steady at INR 42,000/t. In Chennai, sentiment remained soft, as foundry plate (8-50 mm) eased by INR 800/t w-o-w to INR 36,000/t, while low manganese CR-busheling was unchanged at INR 42,500/t. Kolkata saw a slight improvement in sentiment, with foundry plate (4-8 mm) prices rising INR 100/t w-o-w to INR 38,900/t. The uptick was aided by firmer semi-finished steel prices in the previous session.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
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