India: Foundry ferrous scrap market edges lower on subdued procurement

• Mild price corrections observed across foundry ferrous scrap markets
• Cautious buying pressures Kolhapur prices; Kolkata plate cutting edges lower

India’s foundry ferrous scrap market edged lower in the week ended 18 December, with price corrections in western markets and marginal declines in eastern India, as cautious, need-based buying amid adequate supply and stable casting demand weighed on sentiment.

Across most foundry clusters including Kolhapur and Kolkata scrap prices traded within a narrow range, though slightly lower than the previous week. Mills and recyclers remained conservative, avoiding bulk purchases as finished casting prices showed no upward momentum. Traders reported that scrap inflows remain comfortable, limiting price support in the near term.

Weekly Price Movement

• Eastern region (Kolkata):

Plate cutting scrap traded at INR 35,000-35,500/t DAP Kolkata, down by INR 200/t week on week, as buying activity slowed marginally.

• Western region (Kolhapur, Maharashtra):

Plate cutting scrap was heard at INR 35,600-36,000/t, down by INR 200/t from last week. CR-busheling (low-manganese) prices declined by INR 500/t, trading in the range of INR 38,800-39,200/t, amid adequate availability and limited appetite for higher-priced material. Traders continued to report steady inflows from local scrap yards, sufficient to meet current demand levels and contributing to the ongoing price correction.

Finished demand overview

Demand from the tractor and agricultural machinery segments remained healthy, while automotive casting orders stayed stable. However, industry participants noted that foundries are refraining from aggressive procurement, as finished casting prices are expected to remain range-bound in the near term. Operational levels across foundries remain comfortable, supporting steady but cautious scrap consumption.

Outlook

The foundry scrap market is expected to remain under mild pressure through the course of December. While demand from auto and agri-component sectors continues to provide a base, comfortable scrap availability may limit any upside. Further minor corrections cannot be ruled out if buying remains restrained, though a sharp decline appears unlikely unless demand weakens significantly.