India’s ferrous scrap imports declined sharply during fiscal year 2025–26, falling by 20% year on year, as domestic scrap availability improved and cheaper local alternatives reduced dependence on imported material.
Despite the decline in imports, India’s overall ferrous scrap consumption rose to a record 41 million metric tons, up 17% from the previous fiscal year, supported by a significant increase in domestic scrap generation.
Domestic scrap supply surged by 22% year on year to 32 million mt, driven by:
- Rising vehicle scrappage activity
- Infrastructure demolition projects
- Higher industrial scrap generation
The shift significantly reduced import demand, particularly in western and northern India.
Among imported grades:
- Heavy melting scrap (HMS) recorded the largest drop in absolute volumes
- MS shredded scrap saw the steepest percentage decline at 35%
Imported HMS 80:20 prices remained in the range of INR 33,000–37,000/mt, while domestic scrap stayed cheaper by approximately INR 2,000–4,000/mt, reducing the commercial attractiveness of imports for electric arc furnace (EAF) and induction furnace (IF) mills.
Additional pressure came from:
- Rising freight costs
- Red Sea shipping disruptions
- Middle East geopolitical tensions
- Weak Indian rupee performance
According to the report, United States remained India’s largest scrap supplier despite a 28% decline in shipments, while Brazil was the only major supplier to record growth, with exports rising 30%.
Looking ahead, India’s imported scrap market is expected to remain cautious as domestic metallic availability continues improving, although stronger steel demand or tighter local scrap supply could revive selective imports in FY2027.
VietnamSteel by Hoa Sen Group
