- Regional divergence persists
- Local supply conditions to drive price movements
Prices of foundry ferrous scrap remained mixed across regions in India during the week ended 26 December, with prices easing in western India, remaining unchanged in the south, and rising in the eastern region. Regional variations in buying activity and scrap availability largely dictated price direction, while overall market sentiment remained cautious amid muted casting demand.
Western India: Kolhapur prices soften on cautious buying
Prices in Kolhapur recorded mild corrections as foundries continued to procure on a strictly need-basis. CR-busheling (low Mn, bundled) declined by INR 200/t w-o-w to INR 38,800/t, while plate cutting scrap (LS & LP, loose) edged lower by INR 100/t to INR 35,700/t.
Market participants attributed the decline to comfortable local scrap availability and the absence of fresh bulk buying. Foundries remained reluctant to build inventory, citing lack of upward movement in finished casting prices.
Southern India: Chennai market remains steady
In Chennai, foundry scrap prices remained unchanged during the week, reflecting balanced demand-supply dynamics. CR-busheling (low Mn, bundled) was assessed at INR 38,500/t, while plate cutting scrap (LS & LP, loose) stood at INR 35,000/t.
Stable offtake from automotive and engineering segments, coupled with steady scrap inflows, helped maintain price stability. However, traders noted that buying activity remained selective, with no signs of aggressive restocking.
Eastern India: Kolkata plate cutting firms
Contrary to the trend in western India, Kolkata recorded a price uptick, aided by improved spot demand in the finished steel segment. Plate cutting scrap (LS & LP, loose) increased by INR 200/t w-o-w to INR 35,700/t.
The rise was driven by marginally tighter availability and active participation from medium-scale foundries, though the overall market remained cautious.
Demand and sentiment
Demand from automotive castings remained unchanged, while tractor and agricultural machinery segments continued to provide support. Despite this, foundries refrained from aggressive procurement, anticipating finished casting prices to remain range-bound in the near term. Operational rates across most clusters remained comfortable, ensuring steady but controlled scrap consumption.
Outlook
Regional price movements are likely to continue to be driven by local supply conditions. While steady end-use demand provides a base, ample scrap availability may limit upside for prices. Further minor corrections in western markets cannot be ruled out, while eastern India may witness selective firmness if spot demand persists.
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