Most sellers treat all iron scrap as one category. It isn’t. HMS and cast iron are fundamentally different materials – different chemistry, different buyers, different end uses, and different price logic entirely.
Mixing them up in one lot costs you money every single time. Understanding what separates them puts you in control of how each gets priced.
The Basic Difference – Chemistry First
HMS (Heavy Melting Scrap) is carbon steel – low carbon content, typically 0.15 – 0.35%. It’s the structural steel from demolished buildings, old machinery frames, railway wagons, industrial equipment. Dense, heavy, high yield in an induction furnace. Melts cleanly.
Cast Iron is a completely different animal. Carbon content runs 2 – 4% – roughly ten times higher than HMS. That high carbon makes it hard and brittle, with a completely different melting behavior. It’s what engine blocks, brake drums, machine tool bases, manhole covers, and old industrial castings are made from.
Same grey color sometimes. Very different material. Very different value story.
Current Rates – February 2026
| Grade | Rate (₹/MT) | Rate (₹/Kg) | Primary Buyer |
|---|---|---|---|
| HMS 1 (80:20) | ₹31,500 – ₹32,000 | ₹31.5 – ₹32 | Induction furnaces |
| HMS 2 | ₹30,500 – ₹31,000 | ₹30.5 – ₹31 | Induction furnaces |
| Cast Iron (Standard) | ₹29,500 – ₹31,000 | ₹29.5 – ₹31 | Foundries, grey iron units |
| CI (Foundry Grade – Clean) | ₹31,000 – ₹34,000 | ₹31 – ₹34 | Specialized foundry buyers |
| CI Toka (Pig Iron Grade) | ₹34,000 – ₹35,000 | ₹34 – ₹35 | High-grade foundry operators |
The numbers sit close. But the spread opens up dramatically based on grade quality and which buyer you target. Standard mixed CI going to an induction furnace gets the lowest rate. Clean foundry-grade CI going to the right grey iron foundry can beat HMS 1 comfortably.
That’s the whole game with cast iron – finding the right buyer, not just any buyer.
Why HMS Gets a Premium at Steel Mills
Induction furnace operators love HMS because it behaves predictably. Low carbon content means clean, consistent melts. High density means good yield per cubic metre of furnace space.
A standard HMS 1 lot at 93% metallic yield gives the mill operator a clear math: known input, known output, known cost. That predictability has value. Mills pay for it.
Cast iron in an induction furnace is a different calculation. High carbon content can cause carbon pickup in the melt – pushing the finished steel out of specification. Most induction furnace operators cap CI content in their furnace burden at 10 – 15% maximum. Above that, the heat quality suffers.
That furnace ceiling is exactly why CI gets docked relative to HMS at steel mills. It’s not that CI is inferior material. It’s that it’s the wrong material for that specific furnace.
| Factor | HMS 1 | Cast Iron |
|---|---|---|
| Carbon content | 0.15 – 0.35% | 2 – 4% |
| Metallic yield (induction furnace) | 92 – 94% | 80 – 85% |
| Max usable ratio in furnace charge | Up to 100% | 10 – 15% max |
| Melting point | ~1,370°C | ~1,150 – 1,200°C |
| Behavior in melt | Predictable, clean | Carbon pickup risk |
| Primary buyer | Induction furnaces | Foundries, grey iron units |
Where Cast Iron Beats HMS – The Foundry Market
Here’s what most sellers never figure out. Cast iron has its own premium market – and it’s not the steel mill.
Grey iron foundries, ductile iron casting units, and pipe foundries specifically need high-carbon iron feedstock. For them, CI is the correct material – not a compromise. They run cupola furnaces or specialized induction furnaces designed for cast iron melting. And they pay accordingly.
In foundry-heavy cities – Kolhapur, Rajkot, Coimbatore, Pune’s MIDC belt, and Ahmedabad – clean cast iron scrap from engine blocks, machine tool castings, and industrial equipment consistently fetches ₹31,000 – ₹34,000/MT. Foundry-grade CI from single-source industrial lots has crossed ₹40,000/MT at specialized buyers in Gujarat.
The mistake most sellers make: they default to the nearest steel mill for CI because that’s where all their other scrap goes. The steel mill pays ₹29,500/MT because it’s the wrong buyer for that material. The right buyer – a grey iron foundry – pays ₹3,000 – ₹5,000/MT more for the same lot.
How to Identify Cast Iron vs Steel – Field Check
This is practical knowledge every scrap handler needs. You can’t quote or sort correctly if you can’t tell the difference on the yard floor.
The spark test: Grind a small piece on an angle grinder and watch the sparks.
- HMS/Mild Steel – long, flowing yellow-orange sparks with forked ends
- Cast Iron – short, dull red sparks with minimal branching
The break test: Drop a piece hard on concrete or hit it with a hammer.
- Steel – dents, bends, deforms
- Cast Iron – fractures, chips, or shatters. The broken surface has a grey, granular appearance.
Weight and density: Cast iron is denser than steel for the same volume. An engine block feels disproportionately heavy for its size. Old cast iron pipes and machine bases have a characteristic heft.
Surface texture: Freshly broken cast iron has a distinctly granular grey surface. Steel fractures show a smoother, brighter surface.
The magnet test tells you very little here – both cast iron and mild steel are ferrous and respond to magnets. It confirms ferrous content but does not distinguish between the two.
Sorting Rules – What Belongs in Which Pile
The single biggest margin improvement most scrap sellers can make is separating CI from HMS before loading. Not after the buyer sees the truck. Before.
| Item | Correct Category |
|---|---|
| Demolished building steel, beams, angles | HMS 1 or HMS 2 |
| Industrial machine frames (steel) | HMS 1 |
| Engine blocks, cylinder heads | Cast Iron – foundry route |
| Brake drums, clutch plates | Cast Iron |
| Manhole covers, drain grates | Cast Iron |
| Old water pipes (grey) | Cast Iron |
| Machine tool bases (lathe beds etc.) | Cast Iron – high value foundry grade |
| Structural plate and sheet | HMS 1 or HMS 2 by thickness |
| Agricultural equipment frames | Mostly HMS, check for CI castings |
| Railway wagon parts | HMS – premium grade |
CI mixed into HMS loads gets the whole lot downgraded. The buyer sees carbon contamination risk and prices defensively. Sorting takes an hour. The rate difference is ₹500 – ₹1,500/MT depending on how much CI was in the pile.
The Grade Within Cast Iron – Not All CI Is Equal
Even within cast iron, there are meaningful quality tiers that affect price.
Standard CI scrap (mixed): Engine blocks, assorted industrial castings, mixed sources. Some surface rust, oil residue, attachments. ₹29,500 – ₹31,000/MT. Goes to general foundries or is added as a small percentage in induction furnace charges.
Clean grey iron (single source): Machine tool castings, pipe sections, clean industrial frames from a single manufacturing source. Known composition, low contamination. ₹31,000 – ₹33,000/MT at foundry buyers.
CI Toka / Pig Iron Grade: Specific high-purity cast iron pieces with consistent carbon content, used directly in controlled foundry heats. ₹34,000 – ₹35,000/MT. Limited buyers but real premium.
Malleable CI scrap: Different heat treatment, different properties, different buyers. Treated separately from grey iron by serious foundry operators.
Knowing your CI grade before calling buyers determines which buyer tier you should be approaching – and therefore what rate you can realistically negotiate.
City-by-City – Where CI Gets the Best Rate
| City | CI Market | Why |
|---|---|---|
| Kolhapur | Strong foundry demand | Traditional grey iron casting industry |
| Rajkot | Very active | Dense foundry cluster in Gujarat border region |
| Pune (MIDC) | Good – selective buyers | Auto component foundries need clean CI |
| Ahmedabad | Active | Mixed foundry and induction furnace buyers |
| Coimbatore | Premium for good grades | South India’s foundry capital |
| Jalna | Induction furnace rate | Less foundry demand – CI gets steel mill pricing |
| Mumbai | Variable | Some foundry buyers but induction furnace pricing dominates |
If you’re in Marathwada sitting on CI scrap, defaulting to Jalna’s induction furnace rate is the easy option – not the best one. Getting a Kolhapur or Pune foundry quote first takes one phone call and could return ₹2,000 – ₹3,000/MT more.
Price History – HMS 1 vs CI Last 12 Months
| Period | HMS 1 (₹/MT) | CI Standard (₹/MT) | Spread |
|---|---|---|---|
| Feb 2025 | ₹36,000 | ₹33,500 | ₹2,500 |
| Apr 2025 | ₹34,700 | ₹32,000 | ₹2,700 |
| Jun 2025 | ₹36,500 | ₹33,800 | ₹2,700 |
| Aug 2025 | ₹37,000 | ₹34,200 | ₹2,800 |
| Sep 2025 | ₹37,500 | ₹34,500 | ₹3,000 |
| Feb 2026 | ₹31,500 – ₹32,000 | ₹29,500 – ₹31,000 | ₹1,000 – ₹2,500 |
The spread between HMS 1 and CI has compressed in early 2026. Slower induction furnace buying has pushed HMS rates down while foundry CI demand remains relatively stable. That compression actually makes CI a comparatively better sell right now than in the September 2025 peak market.
The Practical Takeaway
HMS and cast iron are not interchangeable. Treating them as one material category means you’re either:
- Selling CI to a buyer who pays steel mill rates when a foundry would pay ₹3,000 more
- Mixing CI into HMS loads and getting the whole lot docked
- Missing the sorting step that turns ₹29,500/MT material into ₹33,000/MT material with one hour of yard work
The rate for each grade is available every day. Checking today’s live scrap rates across India before you call buyers gives you the current spread so you know exactly what premium to push for when you’ve done the sorting right.
Pair that with understanding how buyers test and grade your material on arrival and you’ve covered both ends – sorting correctly before dispatch, and knowing what the buyer checks when your truck pulls in.
Rates referenced are indicative as of February 2026. Actual transacted prices vary by grade purity, quantity, buyer type, and regional demand. Foundry-grade CI pricing is highly buyer-specific – always get multiple quotes before confirming.
