India’s Ministry of Steel invites comments on scrap policy

Monday, 01 July 2019 22:48:02 (GMT+3)   |   San Diego

The Government of India, Ministry of Steel MF Division has produced the Draft for the Steel Scrap Policy and is inviting comments from stakeholders by July 14. The National Steel Policy 2017 (NSP 2017) aims to move India to 300 million mt crude steel production by 2030 with a contribution of 35-40 percent from Electric Arc Furnaces (EAFs) and developing the necessary scrap infrastructure to achieve the production goals. The document also acknowledges the need for scrap usage at 15-20 percent by Basic Oxygen Furnaces (BOFs).

The draft steel scrap policy aims to improve India’s self-sufficiency by producing domestic high-quality ferrous scrap. Other objectives of the policy are to decongest Indian cities from end-of-life vehicles (ELVs) and support the environment. It sets forth objectives for regional scrap processors, governmental support mandates, and ideas for moving scrap processing from the present loose, fragmented format to one with systematic processes and large corporate drivers.

At present, the annual demand for steel scrap in India is 30 million mt, with five million mt imported every year. Automobile, construction and ship-breaking industries are the largest generators of steel scrap. With the amount produced climbing to three times the present production level, steel scrap will become more essential for India.

According to the policy, the use of every mt of scrap shall save 1.1 mt of iron ore, 630 kg of coking coal, and 55 kg of limestone.

Mahindra MSTC Recycling Pvt Ltd, a joint venture between Mahindra group and state-owned MSTC Ltd set up a plant in Greater Noida in 2018 and aims to have 30 plants by 2021-22. Tata Steel Ltd recently announced that it is establishing India’s first recycling plant in Rohtak, Haryana. The Tata Steel site is expected to be operational in the second half of the fiscal year 2020 (ended March 2020).

Most Recent Related Articles

Softening of ex-US scrap prices triggers increased restocking by Indian mills

India’s KIOCL achieves 6.12% increase in pellet output in FY 2019-20

India’s scrap trading higher after sharp price drop, more mills normalize operations

India’s import scrap trading activity increases with intensified sales from US

Indian mills looking for scrap, but high prices and tight supply hit trading