ISRI: Scrap growth in India

Friday, 20 April 2018 00:58:53 (GMT+3)   |   San Diego
       

Surendra Borad Patawari, founder and Chairman of Gemini Corporation, spoke on diversification and the potential of India during the ISRI 2018 Vegas convention. Regarding diversification, he re-read the words of caution he had delivered five years ago warning of the over-dependence on China by many US and EU countries to a level of 85 percent of business in some cases.

Patawari described how his company took proactive steps to diversify and therefore was “not affected much” with the latest policy changes in China. His firm does business in the EU, Middle East, India and China. He noted that more companies are taking interest in India, and the country reported a 7.2 percent growth in Q4 2017 with expectations to grow 7-8 percent in 2018. Given the vast population of 1.3 billion and positive economic growth, he noted the relevant expectation of opportunities in India. He also noted the need to understand that growth in some areas will be managed by the Indian government. For example, in plastics he stated, “India has allocated quotas and licenses since 2015 and for the moment is not allocating more licenses.” He further reported that in the Indian Free Trade Zone transport vehicles are checked at entry and exit and it is not easy to import more than licensed. He said, “In plastics, whatever you import in regards quantity, you have to export 35 percent.”

Another example provided of the managed environment is a recent agreement to allow imports of companies such as Apple and Dell products for repair. He elaborated that those agreements were made under the condition that the firms must export goods after they are repaired.

Specifically, in regards ferrous scrap, he stated that import opportunities should continue growing. He also confirmed rumors that high level meetings are ongoing in the Indian government which will result in a domestic metal recycling policy “that should be finalized in a few months.” The policy will increase domestic feedstock of ferrous scrap.


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