en.Wedoany.com Reported - On July 1, a major Indian automaker completed an auction of 5,000 tonnes of low-manganese CR busheling scrap at its Gurugram-Haryana plant, with transaction prices at ex-works INR 37,300-37,500/tonne. Compared to the ex-works price of INR 36,300-36,500/tonne for the 5,600-tonne auction on May 26, this price increased by approximately INR 1,000/tonne. Due to sluggish imported scrap procurement, steel mills in the northern region directly participated in the auction to secure raw materials. Tightening scrap supply has forced alloy steel manufacturers, especially those in Mandi and Ludhiana, to pay additional premiums.
Sources revealed that the automaker did not hold an auction in June due to planned maintenance, thus scheduling the next auction for early July. The absence of an auction in June led to supply tightness, as the automaker is a stable institutional seller, which is likely to drive a more significant price increase in the July auction. Institutional OEM auctions are closely monitored by small and medium-sized steel mills and scrap traders, as these auctions provide large and stable volumes of relatively clean, low-manganese CR busheling scrap, which directly supports sheet metal processing and local alloy steel manufacturers.
Another major Tier 1 automaker (focusing on body-in-white, chassis, and seat components) also completed an auction of approximately 2,100 tonnes of CR busheling scrap in June. Results varied across different lots, reflecting local supply-demand balances and logistical differences. A 700-tonne lot of CR/HR mix scrap from the Pantnagar plant in Uttarakhand was sold at an ex-works price of INR 37,100/tonne, down by approximately INR 400/tonne month-on-month. A 700-tonne lot of CR/HR mix scrap from the Pune plant in Maharashtra was sold at an ex-works price of INR 34,000/tonne, down significantly by approximately INR 2,800/tonne month-on-month. A 600-tonne lot of CR/HR mix scrap from the Sanand plant in Gujarat received bids up to an ex-works price of INR 36,300/tonne, up by approximately INR 1,100/tonne month-on-month.
Analysis indicates that results from Pantnagar and Gurugram show stronger demand in the north, with tightening supply of clean CR busheling scrap limiting downward price pressure. Prices in Udham Singh Nagar were close to the level of the Gurugram auction, suggesting active procurement activities by small and medium-sized steel mills in North India. The sharp price decline in Pune indicates weaker demand from local buyers, possibly due to higher inventory levels at local small and medium-sized steel mills, sluggish demand for automotive body remelting, or competition from other scrap sources such as HMS grades or sponge iron. Additionally, in Mumbai, steel prices continued to decline throughout June as infrastructure activities stalled due to water supply shortages.
