India: CR busheling prices rise by around INR 1,000/t in Jul'26 auction from leading automaker

• Tight supply supports price rise in latest auction
  
  
• Jun'26 OEM auction lots show regional divergence
  
  

In a prominent automaker's auction for 5,000 t of low-manganese CR busheling scrap from its Gurgaon-Haryana plant on 1 July, bids reached INR 37,300/t-37,500/t ex-works, up by around INR 1,000/t from 26 May's 5,600 t auction closed at INR 36,300-36,500/t ex-works.

Due to subdued procurement of imported scrap, northern region mills have been directly participating in auctions to secure material. The tighter scrap supply is forcing alloy steel makers -- especially those in Mandi and Ludhiana -- to pay an additional premium.

Auction cadence and supply gap

Sources indicate the automaker did not hold a June sale due to planned maintenance and, hence, scheduled the next auction in early July. The skipping of an auction in June tightened availability, given that the automaker is a steady institutional seller, and likely contributed to the sharper uptick at the July event.

Institutional OEM auctions are closely watched by secondary steelmakers and scrap traders because they supply large, consistent volumes of relatively clean, low-manganese CR busheling, material that directly supports sheet-metal work and local alloy steel makers.

Other OEM auction outcomes - Jun'26 round-up

A second major Tier1 automotive manufacturer (specialising in BIW, chassis, and seating components) also conducted a sale for about 2,100 t of CR busheling during June. The results of regional lots were mixed, reflecting local demand-supply balances and logistics:

Pantnagar, Uttarakhand: 700 t of CR/HR mix scrap were booked at INR 37,100/t ex-works. Bids fell by about INR 400/t m-o-m.

Pune, Maharashtra: 700 t of CR/HR mix scrap were sold at INR 34,000/t ex-works. Bids dropped sharply by about INR 2,800/t m-o-m.

Sanand, Gujarat: 600 t of CR/HR mix scrap fetched bids of INR 36,300/t ex-works. Bids rose by around INR 1,100/t m-o-m.

Region-wise results analysis

Northern strength: The Pantnagar and Gurgaon results point to stronger northern demand or tighter available clean CR lots, which limited downward pressure. The nearparity of Udham Singh Nagar pricing with the Gurgaon auction levels indicates robust procurement activity among north Indian secondary mills.

Maharashtra softness: Pune's steep m-o-m decline suggests weaker local buyer appetite. Possible reasons include higher local secondary mill inventories, softer auto body remelting requirements, or competition from alternative scrap sources (such as HMS grades or sponge iron). Similarly, the steel market in Mumbai softened, primarily because infrastructure activity halted due to water supply shortages. As a result, steel prices continued to fall throughout the month of June.