- Regional divergence persists
- Local supply conditions to drive price movements
Foundry-grade ferrous scrap prices in India displayed wider regional divergence during the latest assessment period, with prices declining in western India, while southern and eastern markets firmed on improved buying interest and tighter availability. Overall market sentiment remained cautiously optimistic, supported by selective demand from automotive and engineering segments.
Western India: Kolhapur prices ease amid comfortable availability
Prices in Kolhapur witnessed mild week-on-week corrections, as foundries continued to procure strictly on a need-basis amid ample local scrap supply.
CR-busheling (low Mn, bundled) fell by INR 200/t w-o-w to INR 38,600/t
Plate cutting scrap (LS & LP, loose) edged lower by INR 100/t to INR 35,600/t
Market participants attributed the softness to adequate scrap inflows and absence of bulk restocking, with foundries refraining from inventory build-up due to range-bound finished casting prices. Buying activity remained cautious, limiting price support.
Southern India: Chennai market turns firm on improved buying interest
In contrast, the Chennai market recorded price gains across key foundry grades, supported by steady offtake from automotive and engineering units and controlled scrap arrivals.
CR-busheling (low Mn, bundled) rose by INR 100/t to INR 38,600/t
Plate cutting scrap (LS & LP, loose) increased by INR 200/t to INR 35,200/t
Traders noted selective restocking by medium and large foundries, as stable order books encouraged incremental procurement. While aggressive buying was absent, the market benefited from balanced supply-demand conditions.
Eastern India: Kolkata sees stronger uptick on tighter availability
Kolkata emerged as the strongest market this week, with plate cutting scrap prices witnessing a sharper rise on improved spot demand and tightening availability.
Plate cutting scrap (LS & LP, loose) surged by INR 300/t w-o-w to INR 36,000/t
The increase was driven by active participation from medium-scale foundries and limited spot supplies, particularly amid steady finished steel and casting demand.
Demand and market outlook
Demand from automotive castings remained stable, while tractor and agricultural machinery segments continued to provide incremental support. However, most foundries remained disciplined in procurement, with operational rates comfortable and inventory levels under control.
Outlook
Regional price movements are expected to remain supply-driven. While southern and eastern markets may retain selective firmness, ample availability in western India could cap upside, with further marginal corrections not ruled out. Overall, the market is likely to stay range-bound in the near term, barring a sharp improvement in finished casting prices.
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