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| India scrap |
India’s steel mills will continue relying on imported scrap as domestic supply remains insufficient, according to EY analysis. The report emphasizes that India’s young steel stock and limited organized recycling create a structural gap. Consequently, imports are essential to meet growing demand from scrap-based steelmakers, especially as the nation expands production and pursues carbon-reduction targets.
Domestic Scrap Supply Limits and Recycling Challenges
India’s domestic scrap generation remains below global benchmarks, despite its potential to lower emissions and reduce input costs. Electric arc furnace (EAF) and induction furnace operations already use recycled steel, yet blast furnace–basic oxygen furnace (BF-BOF) production dominates. As a result, the overall scrap share in crude steel production remains low. Meanwhile, formal scrap-processing frameworks and end-of-life vehicle (ELV) recycling are gradually improving domestic supplies, though policy support is still required to close the structural gap.
Strategic Scrap Integration and Geopolitical Considerations
EY highlights that India’s green steel pathway depends on integrating scrap into production, reporting, and finance. Melting additional scrap can directly support net-zero steel ambitions while strengthening resource security. However, geopolitical tensions in the Middle East disrupt recycled steel flows from the Persian Gulf, posing import risks. Therefore, aligning scrap strategy with carbon-intensity disclosures, green finance, and emissions reporting is critical as global markets increasingly differentiate steel based on sustainability metrics.
ScrapInsight Commentary
India’s reliance on scrap imports will likely persist, supporting both EAF expansion and decarbonization goals. Price volatility may increase due to geopolitical supply risks, while enhanced domestic recycling and policy incentives could gradually reduce import dependency. Scrap steel remains a key lever for India’s net-zero steel trajectory and resource security.
