India: CR busheling scrap prices ease in May'26 amid lacklustre steel demand

• OEM auction prices fall across major hubs on weak buying interest
  
  
• Flat steel correction, inventory pressure keeps buying cautious
  
  

Indias CR busheling scrap market softened in May 2026 compared with April 2026, especially in the northern and southern regions, where prices dropped by INR 1,000-1,700/t m-o-m, as weak demand in the secondary steel market, flat steel price corrections, and inventory pressure in finished steel weighed on prices and scrap buying patterns. In western India, however, Jalna CR busheling prices remained stable due to tighter supply and decent demand from foundry and local mills, while Ahmedabad saw a price drop of INR 650/t m-o-m. Overall, OEM scrap trends largely mirrored the broader secondary steel markets subdued sentiment.

CR busheling auction comparison m-o-m

Indian OEM scrap auctions witnessed a broad m-o-m price correction of around INR 1,000-2,000/t in May 2026. The price decline was led by Ahmedabad, which plunged 6% to INR 35,200/t, followed closely by Delhi NCR, down 5%. Major automotive hubs such as Pune and Gurugram also registered declines of 3% to 4%. Bucking the trend, Panthnagar posted a modest 1% gain.

HRC, CRC price trends

At the trade level, HRC prices declined by INR 600/t m-om in May to INR 58,500/t, compared with INR 59,100/t in April. Similarly, CRC prices corrected by INR 1,300/t to INR 65,200/t, down from INR 66,500/t during the same period. The price decline was primarily driven by sluggish market demand and a cautious purchasing sentiment among buyers.

Imported vs domestic scrap

Squeezed by tight margins and global trade tensions, north Indian mills are shunning expensive scrap imports in favour of local alternatives. Imported CR busheling scrap at Kandla and Mundra was at $425-428/t (approx. INR 44,250-44,550/t DAP post-duties), leading to a significant premium over domestic prices of INR 39,200-39,500/t DAP. Consequently, despite limited local availability, mills are abandoning imports to protect their bottom lines.

Auto sector performance

Indias passenger vehicle market stayed resilient in May 2026 as top OEMs dispatched 4,40,808 units, up 26.0% y-o-y from 3,49,713 in May 2025 and nearly flat m-o-m (-0.2%) versus April 2026. Maruti Suzuki posted a sharp market-share gain, while Tata and Mahindra remained second and third; Hyundai, Toyota, and Kia held the top-six positions but faced y-o-y share pressure.

Outlook

CR busheling scrap prices are expected to remain under pressure in June unless finished steel demand improves materially. Domestic supply dynamics may provide regional support, but procurement is likely to stay need-based as mills continue to prioritise cost control and inventory management.