India: Foundry scrap prices soften further; low-Mn busheling remains relatively firm

• Plate scrap prices decline across regions 
• Tight low-Mn processed scrap availability limits correction

Ferrous scrap prices across India’s major foundry hubs continued to weaken w-o-w on 26 May 2026, with most plate scrap and processed scrap grades witnessing mild corrections across regions. However, CR-busheling Low Mn prices remained relatively stable in Kolhapur amid continued tight availability.

Market participants indicated that although current corrections remain limited, there is growing expectation that scrap prices could decline by around INR 1,000–2,000/t next month due to cautious procurement activity and continued pressure on mill margins.

Demand remains healthy; labour shortage impacts production

End-user demand continued to remain healthy, with mills reporting sufficient order bookings. Export demand also remained favourable, although shipment movement has been partially affected due to ongoing logistical disruptions linked to the West Asia conflict.

Market participants stated that there is currently no major weakness in finished casting demand. However, production activity at several foundries and mills has been impacted by labour shortages, as many daily-wage workers from North India and Odisha regions have temporarily returned to their villages during the agricultural season.

Raw material supply remains tight

Scrap availability continued to remain tight across major foundry clusters. However, suppliers remained under pressure to reduce scrap offers as mills continued to resist higher production costs.

Grade-wise availability also remained uneven. In particular, CR-busheling Low Mn material continued to witness tighter availability compared with High Mn grades due to lower generation and limited spot availability, restricting any major correction in prices.

Region-wise scenario

Kolhapur
Foundry plate scrap prices declined by INR 200/t to INR 39,500/t.
CR-busheling Low Mn prices remained stable at INR 44,000/t.

Coimbatore
Foundry plate scrap prices declined by INR 600/t to INR 42,500/t.
CR-busheling Low Mn prices declined by INR 300/t to INR 46,000/t.

Chennai
Foundry plate scrap prices declined by INR 300/t to INR 41,000/t.
CR-busheling Low Mn prices softened marginally by INR 100/t to INR 44,400/t.

Kolkata
Foundry plate scrap prices declined by INR 200/t to INR 39,100/t.

Outlook

Market outlook in the foundry scrap segment remains on the downside amid cautious procurement activity, pressure on mill margins, and resistance towards higher raw material costs. Market participants are expecting scrap prices to decline further by around INR 1,000-2,000/t next month if buying sentiment continues to remain weak.