India: Foundry scrap prices strengthen across regions on steady end-user demand

• Limited scrap supply supports sharp price gains in Kolkata
• Kolhapur prices edge up on steady, need-based foundry offtake

Foundry scrap prices across India’s major clusters moved higher during the week ended 22 January 2026, indicating a firmer market tone, supported by steady demand from automotive and agricultural equipment segments. Unlike the previous week’s marginal movements, price gains were more pronounced, particularly in eastern India, reflecting improving sentiment amid balanced supply conditions.

Western India: Kolhapur posts modest but steady gains

Kolhapur prices edged up on consistent foundry offtake and controlled arrivals. CR-busheling (low-manganese, bundled) increased by INR 200/t w-o-w to INR 39,200/t, while plate cutting scrap (LS & LP, loose) rose by INR 200/t to INR 36,200/t. Market participants, however, said procurement remained selective, with buyers focusing on immediate requirements rather than aggressive inventory building.

Southern India: Chennai sees stronger upward momentum

Chennai recorded sharper gains across key grades, supported by steady demand from automotive and engineering casting units. Plate cutting scrap (LS & LP, loose) climbed up by INR 500/t to INR 36,000/t, while CR-busheling (low-manganese, bundled) rose by INR 500/t to INR 39,000/t. Traders highlighted that regular restocking by medium and large foundries kept the market firm despite adequate availability.

Eastern India: Kolkata turns bullish

Kolkata witnessed a notable upside, with plate cutting scrap (LS & LP, loose) jumping by INR 1,000/t to INR 37,000/t. Participants attributed the rise to improved local demand and tighter availability, marking a shift from the previously range-bound trend.

Outlook

Foundry demand is expected to remain steady in the near term, supported by stable automotive offtake and continued requirements from the agricultural machinery segment. However, with buyers maintaining cautious procurement and inventory positions largely under control, prices are likely to trade in a narrow range, with any further upside dependent on tighter scrap availability or a stronger pick-up in end-user demand.