The import trends for ferrous scrap in India are one area where there has been a lot of interest in 2023 due to increased import levels in spite of inherent limitations in domestic sourcing. The European Union is set to introduce tighter export authorization rules in its revamped Waste Shipment Regulation, under which an export authorization will be mandatory for all countries not classified as members of the OECD for importing ferrous scrap from Europe, beginning in 2027. This paper will look at current trends in Indian import trends for ferrous scrap, taking into consideration the possible effects of the export regulations by the EU.
Recent Trends in India’s Ferrous Scrap Imports
According to Business Standard, in the ongoing fiscal year FY26, the imports of ferrous scrap in India have shown a significant rise, which outlines its reliance on imports. According to customs figures, the total imports in the period between April and October 2025 were approximately 5.695 million tons, which was 45% more compared to 3.93 million tons in the same period in FY25.
This increase remains a result of the steady demand for scrap steel by the steel industry in the country, in spite of the low domestic scrap generation. It is quite notable to see the quantities of scrap steel imported into the country, at a time when the Indian automotive industry, which generates scrap steel, has not yet managed to produce at higher levels.
Domestic Dynamics and Competitive Pressures
Despite the earnings boost due to the import increase, the total ferrous scrap market in India is being driven by the availability of alternate material. Cheap alternatives such as Direct Reduced Iron sometimes create a negative impact on the demand for imports. In early 2025, imports of ferrous scrap showed a slight increase over the past year, but the demand for ferrous scrap remains under pressure due to the influence of cheaper Direct Reduced Iron.
Also, the historical trend suggests that although the total production of crude steel in India has continued to increase, the quantity of scrap imported annually may vary considerably from time to time.
EU Export Regulations: What is Changing and Why It Matters
One of the most significant international developments that are important in the context of scrap imported by India is the trade policy being developed by the European Union on metal scrap.
In 2025, the European Commission launched a customs surveillance tool that aims to monitor the importation and exportation of metal scraps, including ferrous scrap, under the action plan for the steel and metals sector in the EU. It is expected that these statistics could be used for trade policies that seek to promote local scrap supply for circular economy and decarbonization targets.
Moreover, from May 21, 2027, onwards, non-OECD countries such as India are required to seek EU approval to import non-hazardous waste material, including ferrous scraps from the EU through the new Waste Shipment Regulation if they are not on an approved list of countries drawn up by the EU. Preparations are underway on this front by Indian industry bodies and their governments.
These sets of rules include a shift from open trade to a system whereby exporters and importers have to show environmental compliance and obtain specific approvals, which could add costs to scrap exporters exporting to India.
Policy Responses
Anticipating a possible disruption in the supply chain due to the stricter export policies on scrap materials in the EU countries, the Indian government is actively contemplating measures to increase the supply of scraps. It has been reported that the Ministry of Steel is working on a plan to increase the supply of scraps from the automotive and ship breaking sectors.
Moreover, experts in the field have noted that since a controlled flow of scrap materials from important international suppliers is expected, there could be stiff competition for scrap imports, especially for better grades used in electric arc furnaces, because of green steel production.
Outlook & Implications
Short-Term (2025-2026)
Imports of ferrous scrap in India are quite significant, and the steel industry is using the imported ferrous scrap to meet their production requirements. However, due to competitiveness from domestic feedstock and other variants of ferrous scrap such as direct-reduced iron (DRI), the pace of imports may moderate.
Medium-Term (2027 and beyond)
With the implementation of this new authorization requirement in the EU, export-oriented sectors like India may require regulatory approvals in order to continue importing their supply of scraps from the EU, thus raising costs of compliance in these countries. This may encourage India to seek alternative suppliers or enhance recycling domestically.
Conclusion
The reliance on imports for ferrous scrap material is pertinent to the Indian market even in 2025. This is owing to structural deficits within the Indian scrap supply chain. A new source of complexity for Indian importers has now emerged with the upcoming export authorization framework within the Waste Shipment Regulations being introduced. It shall be imperative for the Indian market to develop their infrastructure for the collection and recycling of scrap, while being proactively involved with European regulations.
Sources:
- India to seek EU nod for scrap imports under new waste shipment rules
- India's ferrous scrap imports jump 45% in FY26 as domestic supply lags
- Steel ministry pushes for increased local scrap supply amid EU export restrictions
- Indian import ferrous scrap demand faces recurrent threat from cheaper metallics in 2025
- Commission introduces surveillance of imports and exports of metal scrap
- Nath, R., Singh, S., Salad, A., Shah, V., & Somwanshi, R. (2024). Spotlight on ferrous scrap.
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BASUNDE, Rohini（Global PR & Reporter ）
Based in India, Rohini works as a Reporter and Global PR professional,
leveraging her strong background in culture, society, and media studies.
Her work primarily involves article writing and managing global public relations campaigns.
Her core areas of interest are multiculturalism, intercultural understanding, and cross-cultural communication,
through which she disseminates information from a truly international perspective.
Hobbies: Drawing, photography, editing, traveling, and cooking.
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