- Chennai CR-busheling records steepest correction of INR 1,900/t w-o-w
- Demand remains healthy, buyers cautious about procurement
Ferrous scrap prices across India’s major foundry hubs remained under pressure during the week ended 7 July 2026, with both plate scrap and low-manganese (low-Mn) CR-busheling grades registering fresh declines. The sharpest correction was witnessed in Chennai’s CR-busheling market, while Coimbatore and Kolhapur also reported significant price erosion amid improved scrap availability and cautious buying sentiment.
Market participants said that despite healthy foundry operations and steady raw material consumption, procurement remained strictly requirement-based. Adequate scrap availability, soft sentiment in the finished steel market, and expectations of further price corrections prevented buyers from building inventories, keeping overall market sentiment subdued.
Demand remains healthy; procurement stays cautious
Demand from the foundry sector remained stable, supported by regular production schedules across automotive, engineering, pump, valve, and agricultural equipment segments. However, foundries continued to purchase only immediate requirements as pressure on casting margins and uncertainty over scrap price direction discouraged bulk buying.
Industry participants indicated that while order books have remained satisfactory, buyers are maintaining low inventory levels and closely monitoring market movements before committing to larger volumes.
Region-wise scenario
Kolhapur
Foundry plate scrap prices declined INR 300/t w-o-w to INR 38,200/t.
Low-Mn CR-busheling prices fell sharply by INR 1,200/t to INR 41,300/t, reflecting adequate availability and cautious buying.
Coimbatore
Foundry plate scrap prices registered the steepest decline among plate grades, falling INR 1,600/t to INR 38,400/t.
Low-Mn CR-busheling prices eased INR 900/t to INR 43,300/t, amid balanced demand but improved scrap inflows.
Chennai
Foundry plate scrap prices dropped INR 1,200/t w-o-w to INR 36,800/t.
Low-Mn CR-busheling recorded the sharpest correction among all assessed markets, declining INR 1,900/t to INR 41,600/t, as increased material availability and cautious procurement weighed on prices.
Kolkata
Foundry plate scrap prices slipped INR 300/t to INR 38,700/t, with buyers continuing to procure material only for immediate requirements despite steady local demand.
Outlook
Foundry steel scrap prices are expected to remain under pressure in the near term as adequate scrap availability and cautious procurement continue to outweigh healthy consumption. While foundry production is expected to remain stable, buyers are likely to maintain a hand-to-mouth purchasing strategy until there is greater clarity on price trends. Unless scrap supply tightens or demand from the casting sector improves significantly, the market is expected to remain largely range-bound with a weak pricing bias.
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