May 2013

Indian scrap industry

Ferrous Scrap is an essential input in Mini steel industry.
Steel is most recyclable material. The US is the largest
exporter in the world, and ships over 90 countries including
China, South Korea, Turkey, Taiwan and India. Turkey is the
largest importer of scrap.

Cast iron scraps of different categories are available in

India. Scraps, generated by sectors such as
Automobiles, Railways, and Engineering are pressed
into bundles. Ship breaking is the major source of
scrap generation with largest concentration in the
West Coast of India. Major production sites are
Gujarat, Mumbai, and Kolkata. Alang and Sosiya yards
of Bhavnagar accounts for 90% of scrap breaking
industry concentration. In the public sector, MSTC
(Metal Scrap Trade Corporation Ltd.) and FSNL (Ferro
Scrap Nigam Ltd.) are involved in scrap trading and
recovery activities respectively.

Apart from the US, India imports also from the UK and
Netherland. Secondary steelmakers are the largest
importers of steel scrap. The total ferrous scrap import in
India is 6.03 MT (2011-12). Indian steel mills import mostly
shredded or Heavy Melting Steel (HMS) grades. This
constitutes around 65% of total import.
The world produces about a total of 10 MTPA of stainless
steel scrap. India imports about 1 MT of these scrap. Many
units use 50-60% imported scrap as raw material for
production of stainless steel. Jindal Stainless is the largest
producer of stainless steel in India.

Steel scrap is most recyclable material. With the use of

scrap in steel making, there is 74% saving on electricity
over virgin steel produced from iron ore. This also
reduces emissions. This CO2 emission is 58% less
compared to virgin steel produced from iron ore. It
helps in energy conservation.
It also reduces load on land fill disposal units and
prevents abandoned steel products in environment.

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