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| India Steel Scrap policy |
Government Targets Higher Scrap Usage in Steel Production
India finalises a new national scrap policy to replace 2019 guidelines. The policy aims to increase scrap utilization in steelmaking to the global average of 31%. Meanwhile, domestic scrap availability is projected to reach 36 million tonnes, supporting India’s steel capacity expansion plans for 2030 and 2047. Therefore, scrap will play a pivotal role in reducing coal imports and emissions.
Strategic Measures to Promote Circular Economy
The policy encourages organised scrap collection, low-carbon steel production, and transparent recycling ecosystems. In addition, funding shredding centres, streamlining VAT, and simplifying car recycling paperwork are proposed. As a result, India aims to align domestic recycling practices with international standards and environmental commitments. BigMint CEO Dhruv Goel emphasizes that this approach will enhance competitively priced green steel.
Market Implications for Steel and Scrap Sectors
Consequently, India’s steelmakers can secure stable scrap supply while reducing dependence on raw materials. The new policy may incentivize investment in recycling infrastructure and innovative low-carbon production methods. Meanwhile, the classification of green steel into three- and five-star categories supports market differentiation and encourages environmentally sustainable production.
ScrapInsight Commentary
India’s updated scrap policy strengthens the domestic circular economy and supports low-carbon steel production. Scrap consumption is likely to surge, moderating import demand for virgin iron ore. The policy signals long-term regulatory support for sustainable recycling practices.
