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Inviting Cheaper Quality Finished Products is Playing Foul In Scrap Imports

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by - 11/12/2015 1781 Views

Steep Fall In Scrap Imports

In a sudden jerk, due to the new change brought about by the global industry body Institute of Scrap Recycling Industries (ISRI), the metallic scrap recyclers in India are in a real water tight compartment in the case of some particular types of metallic scrap. This is happening at a time when the end products are easily available at very cheap rates due to inviting cheaper products, the result portraying a steep fall in scrap demand for recycling.

Washington-based ISRI, which represents 1,600 scrap recycling companies worldwide, very recently brought about a change in its specifications and incorporated radio-mixed hard/soft scrap lead, which consists of clean lead solid and lead shots free of other materials. Also, relay — lead covered copper cable — has been added to the existing categories of metallic scrap for trading on bilateral basis — negotiations between buyers and sellers. Earlier, these scrap varieties of non-ferrous metal scrap were allowed to trade freely.

An official from the industry commented that: there would be a slight impact temporarily on imports whenever a change is specified in the quality of the stuff. The steep downward trend is a global issue and has affected the overall import by almost 15 percent in the last few months and this atmosphere could continue for a while. 

Dhawal Shah, vice-president, Metal Recycling Association of India has this to say, “More than change in scrap specification, a sharp decline in its demand from consumer industries hit import of metallic scrap in the past few months. Import has been lower by nearly 15 per cent in the past few months.” 

It is very hilarious for me to note that, this change in metal scrap trading specifications by ISRI has come at a time when the scrap recycling industry in India is facing a topsy – turvy situation and lesser demand from consumer industries and cheap import of end products from countries with which India has entered free trade agreements (FTAs).

It is noteworthy that, half of India’s base metals demand is recovered through recycling of metal scrap. A substantial portion of India’s steel production is met through recycling of ferrous scrap. Statistics show that in 2013-14, total scrap import in India was reported at 5.77 million tonnes against 9.25 million tonnes in the previous year and 7.87 million tonnes in 2011-12. According to estimates, India’s import of metallic scrap fell by 15 per cent in 2014-15 and the current financial year so far.

Trade sources strongly believe that the government is concerned about the quality of metal scrap imported into the country. Mr. Shah comments that “There has been shrinkage in metallic output from recyclers resulting in proportionate decline in scrap import.”

Rohit Shah, the M.D of Perfect Valves, a city-based metal recycler opines that, the government should exempt categories like metals from FTA ambit as the same disowns the ‘Make in India’ vision.

Category : General

Tags : Scrap News, Metal Scrap News, Metal Scrap Import, Current Metal Scrap News


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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info

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