The Indian government is developing policies to increase domestic and foreign investment in scrap steel recycling facilities, said Ruchika Govil, secretary of the country's steel ministry.
According to forecasts by the Ministry of Steel, demand for steel scrap in India will be 29.31 million tons per year in the fiscal year ending in March 2020, with a supply of 27.3 million tons per year. India is importing scrap steel to fill the deficit.
Ferrous scrap is used as a raw material for steel production in electric arc and induction furnaces, which account for about 35-40 percent of India's total steel production. India produced 27.7 million tonnes of crude steel in April-June, up 3.4 percent from a year earlier.
Govil said the new policy will stimulate the development of scrap collectors, collection and dismantling centers, and shredder production.
India's first Cero car shredder was created in December by the Mahindra group, one of the country's largest car manufacturers. Many automakers, including Tata Motors and Hyundai Motor India, have also shown interest in such shredding devices. And the government is looking for foreign investors to set up joint ventures for scrap recycling with domestic firms.
India's domestic scrap prices have been stable at Rs 24,000-25,000 (roughly $ 350-365) per tonne this week. Demand for scrap metal was low due to monsoon rains that weaken construction activity, which affects the demand for rebar. Spot prices for scrap in India are sensitive to rebar demand, as 60 percent of the scrap is used in rebar production.
