India: Foundry scrap prices soften further; Chennai plate prices lead losses

• Plate scrap prices fall sharper across southern markets
• Tight availability supports low-Mn processed scrap prices

Ferrous scrap prices across India’s major foundry hubs continued to weaken w-o-w on 2 June 2026, with plate scrap grades witnessing significant corrections, particularly in southern markets. Chennai recorded the steepest decline, while Coimbatore also saw notable downward movement. However, low-manganese CR-busheling prices remained relatively resilient due to continued supply tightness.

Market participants indicated that foundries have become increasingly cautious in their procurement activity amid pressure on finished product realisations and rising margin concerns. While scrap suppliers have reduced offers in some regions, the correction in processed low-Mn scrap remains limited because of restricted generation and lower spot availability.

Demand remains stable; procurement turns cautious

Demand for castings remained largely stable, supported by regular domestic and export orders. However, foundries continued to procure material on a need-based basis amid uncertainty over future scrap price movements and pressure on conversion margins.

Several market participants expect further downward pressure on plate scrap prices if buying activity remains subdued over the coming weeks. However, any major correction in low-manganese busheling prices may remain limited due to supply-side constraints.

Raw material supply remains uneven

Plate scrap availability improved slightly across some regions, leading to sharper price corrections. In contrast, low-Mn CR-busheling continued to remain scarce, particularly in southern markets, restricting significant price declines despite cautious buying sentiment.

Region-wise scenario

Kolhapur

• Foundry plate scrap prices declined by INR 500/t to INR 39,000/t.
• CR-busheling Low Mn prices declined by INR 500/t to INR 43,500/t.

Coimbatore

• Foundry plate scrap prices declined by INR 1,500/t to INR 41,000/t.
• CR-busheling Low Mn prices declined by INR 500/t to INR 45,500/t.

Chennai

• Foundry plate scrap prices declined sharply by INR 2,300/t to INR 38,700/t.
• CR-busheling Low Mn prices increased marginally by INR 100/t to INR 44,500/t.

Kolkata

• Foundry plate scrap prices increased by INR 100/t to INR 39,200/t.

Outlook

Following the sharp correction witnessed during the first week of June, particularly in plate scrap grades across southern markets, the downside pressure appears to have eased. Market participants indicated that current price levels have become more acceptable to buyers, and no major correction is expected in the coming weeks unless there is a significant deterioration in demand or a sudden increase in scrap availability.