India: Domestic prompt scrap demand rising amid supply crunch

Demand for CR-busheling, also known as prompt scrap, in India, is on the rise due to its low availability in the domestic market.

Prompt scrap - or prime or new scrap, is a by-product of manufacturing industries, especially automotive. It includes CR punchings, turnings, borings, and cuttings. Prompt scrap metal comes in all shapes and sizes.

Some primary and large secondary mills prefer prompt scrap over HMS 80:20 and thus continue to bid in the auctions conducted by automobile manufacturers.

Auctions are a key source of large quantities of prompt scrap, which major players in India look for. Maruti Suzuki's Gurgaon plant also conducts monthly auction for around 5,000 tonnes (t) of CR-busheling.

Mainly, all the big players participate in these auctions. The last auction's prices were at INR 44,400-44,500/t exw in May-22, a source informed SteelMint.

Last week, some private auto component manufacturers in western India conducted multiple auctions for CR-busheling scrap which received bids at around INR 44,500-45,000/t ex works.

Today's spot prices of CR busheling scrap are assessed at INR 47,000-47,200/t in Mandi Gobindgarh, INR 46,800-47,000/t in Ludhiana, INR 42,400-42,600/t in Jalna and INR 42,400-44,600/t in Chennai on a DAP basis.

Global prompt scrap overview
Average monthly June prices of prompt scrap in the US, as per the Raw Material Data Aggregation Service's (RMDAS's) assessment are at $650/t compared with $711/t in May. Due to non-availability of quality scrap, The index for Prompt Industrial Comp to shredded scrap stands at $169/t m-o-m.