- Prices rebound in auctions in western, northern India
- Higher steel, raw material costs support auction bids
India’s CR busheling scrap prices staged a sharp comeback in August 2026, snapping a four-month downtrend as tight supply and firm secondary steel demand lifted prices across regions. Markets in western and northern India led the rally with steep m-o-m gains, while southern yards posted a more moderate uptick.
Prices across regions rose by roughly INR 250-1,950/t from July, as alloy and secondary steel mills stepped up buying amid improved order books. The rebound was further supported by higher input costs-coal and sponge iron-and firming up of primary steel prices, which together underpinned scrap valuations after consecutive monthly declines since April.
CR busheling auctions
Indian OEM scrap auction prices staged a broad-based rally in August, rising by roughly INR 600-4,200/t m-o-m as stronger end-demand and aggressive buyer bidding converged with firmer steel prices. The uptick followed a supportive turn in both primary and secondary steel markets, where improved order books and higher realisations encouraged mills to bid more competitively for scarce premium scrap grades.
Regionally, the western market led the charge, with auction clearances jumping around 13% from July levels as alloy and secondary steel mills competed for limited HMS and busheling lots. Northern yards posted a more moderate but still firm 6% gain, while Chennai’s auction market advanced by about 2%, reflecting cautious but steady demand from local rerollers and forging units.
HRC, CRC price trends
At the trade level, HRC prices increased by INR 700/t m-o-m to INR 58,600/t in August from INR 57,900/t in July, while CRC prices also rose by INR 700/t m-o-m to INR 65,700/t from INR 65,000/t over the same period. The increase was supported by improved market sentiment and higher offers, although procurement continued to remain largely requirement-based, reflecting a cautious approach among buyers.
Import vs domestic
Imported CR busheling scrap at Kandla and Mundra was assessed at $425-430/t, or roughly INR 42,100-42,650/t DAP after duties, while domestic busheling in Ahmedabad stood at INR 35,450/t DAP. No major import deals were reported in August 2026, as buyers continued to favour flexible procurement via domestic OEM auctions and local suppliers over committing to overseas cargoes.
Auto sector performance
India’s passenger vehicle market remained robust in August 2026, with 14 OEMs dispatching 4,41,576 units, up 34.7% y-o-y but down 4.7% from July. Maruti Suzuki led with 1,76,971 units (+34.8% y-o-y, 10.0% m-o-m). Tata Motors surged 59.1% y-o-y to 65,253 units, though off 7.0% from July. Mahindra held third with 59,257 units (+50.4% y-o-y, 1.6% m-o-m), while Hyundai clocked 54,396 units (+23.6% y-o-y, 2.9% m-o-m), its best-ever August. Pre-festive demand is expected to support a rebound in September.
Outlook
CR busheling scrap auction prices are expected to remain firm in September, supported by higher steel and raw material costs and improved secondary steel demand. Pre-festive buying could strengthen procurement activity, particularly if passenger vehicle demand improves as expected. However, gains are likely to depend on auction availability and the pace of secondary steel demand recovery.
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