India: Foundry scrap prices extend gains on tight supply

• Lower production at OEMs reduces scrap generation
• Rising input costs keep casting margins under pressure

Foundry-grade scrap prices in India increased w-o-w on 31 March 2026, with gains observed across all major regional markets. The uptrend remains largely supply-driven, supported by tight availability of CR-busheling and improved replacement costs.

Western markets lead gains

In Kolhapur, plate-cutting scrap (4-8 mm) prices increased by INR 500/t w-o-w to INR 39,500/t, while CR-busheling (low Mn) saw a sharper rise of INR 1,000/t to INR 43,500/t, marking the highest weekly gain among all regions.

Market participants attributed the sharp rise in CR-busheling prices to limited scrap generation from OEMs and continued tightness in high-quality CRC-based inputs.

Southern markets show steady movement

In the south, price increases remained moderate but firm.

Coimbatore

• Plate-cutting scrap rose by INR 100/t to INR 40,800/t.
• CR-busheling increased by INR 100/t to INR 43,800/t.

Chennai

• Plate-cutting scrap gained INR 300/t to INR 39,500/t.
• CR-busheling moved up by INR 300/t to INR 42,800/t.

The relatively slower rise indicates resistance at higher price levels, even as supply remains constrained.

Eastern market sees sharp uptick

In Kolkata, plate-cutting scrap (4-8 mm) prices increased by INR 700/t w-o-w to INR 39,000/t, supported by limited inflows and improved local demand.

Supply tightness continues to drive market

Market sources highlighted that scrap availability remains constrained, particularly for CR-busheling grades. Reduced production levels at OEMs, many of whom have scaled down operations from three shifts to a single shift, have significantly impacted scrap generation.

Additionally, challenges in sourcing good-quality cold-rolled coils (CRCs, largely import-dependent) have further tightened the availability of prime scrap.

Cost push outweighs demand

The current rally is primarily supply-led, with demand from casting and engineering sectors remaining stable but not aggressive.

As a result, foundry margins are under pressure, as rising raw material costs are not fully passed on to end-users.

Outlook

Foundry scrap prices are expected to remain firm to upward in the near term, supported by continued supply tightness.