Fears new Indian rules could kill off scrap steel market


Plans to introduce a quality standard for scrap metal processors in India should be repealed, according to Indian steel bodies.

The Economic Times is reporting that a number of Indian steel bodies plan to abandon an Indian government regulation that will mean steel makers in India will need to get a licence from the Bureau of Indian Standards in order to operate.


From January 2012, all steel manufacturers using primary and secondary material will need to have the licence or will not be able to sell their material in India.

It is expected to impact most on the shipbreaking, furnace and re-rolling mills most of all. According to the Steel Re-Rolling Mills Association of India, there are 2,600 of these companies, with 1,800 of these using scrap steel. The shipbreaking industry supplies 70 per cent of the metal to the scrap re-rolling sector.

However, an exemption means companies can export material to the specification of the buyer abroad, which many believe means will lead to most steel being exported from India rather than processed there. As a result, a number of metal recycling bodies have joined together to lobby the Indian government to repeal the measures.

Metal Recycling Association of India president Ikbal Nathani said that rather than introduce these measures, there should be more promotion of recycling. He said: “Metal scrap is a vital raw material source for Indian electric and induction furnace mills as well as for the non-ferrous secondary sector producers that are heavily dependent on it also, so usage of scrap metal should be promoted.”