India: Foundry scrap market holds steady amid balanced demand, limited supply pressure

• Prices remain stable across major foundry hubs
• Steady auto and agri demand keeps sentiment stable

The Indian foundry scrap market continued to trade in a stable range this week, with no major price movement observed across key producing regions. Market participants noted that scrap supply has slightly improved compared to the previous week, though inflows are still not enough to create any pressure on prices. Demand from the automotive, tractor, and agricultural component sectors remained firm, helping maintain a balanced market sentiment.

Across major hubs such as Kolkata, Kolhapur, and Coimbatore, foundry-grade scrap continued to move within last week’s range. Mills and recyclers maintained cautious buying, opting for need-based procurement as finished casting orders remained steady but unspectacular. Traders reported that while there is no significant shortage, scrap availability is not abundant enough to trigger aggressive price cuts.

Weekly price movement
The ferrous scrap market remained largely unchanged this week:

• Eastern region (Kolkata):
Plate cutting scrap traded at INR 34,000-34,500/t DAP Kolkata, reflecting steady conditions with marginal improvement in supply.

• Western region (Kolhapur, Maharashtra):
Plate cutting scrap was heard at INR 35,700-36,000/t, unchanged from last week.
CR bushling (low-manganese) held stable in the range of INR 39,000-39,500/t, with limited high-quality material available.

Traders continued to report moderate inflow from local yards, sufficient to meet current demand but not enough to exert downward pressure.

Demand overview
Demand from the tractor and agricultural machinery sectors remained steady, supporting foundry operations at comfortable levels. Automotive casting orders were stable, helping mills maintain consistent production schedules. Market participants noted that foundries are currently buying scrap on a requirement basis, avoiding bulk purchases due to stable finished casting prices.

Outlook
In the near term, the foundry scrap market is expected to remain stable, with no sharp price movements expected. Demand from the auto and agri-component segments is expected to remain healthy, supporting stability. If scrap inflows improve further, minor corrections cannot be ruled out, but any significant downside remains unlikely unless demand weakens.