Scrap Metal
The Indian metal industry is growing at a pace as fast as India’s industrial economy, offering one of the steepest returns in the Asia-Pacific region. The metal scrap recycling industry in India, is also growing at a rapid pace. As there is less domestic scrap generated then demand, India imports about half of the 1.2 million metric tons of scrap metal consumed annually in the country.
The United States is a major exporter of ferrous and non-ferrous scrap into India. According to the U.S. Institute of Scrap Recycling Industries Inc. (ISRI), the U.S. based scrap industry is a significant exporter of high quality scrap commodities to industrial consumers worldwide. Asia, and India in particular, is one of the fastest growing markets in the world for scrap metal. In 2005 (the latest year for which data is available), U.S. scrap exporters shipped more than $350 million of scrap commodities to India, including approximately $250 million of ferrous and nonferrous scrap. (see Market Demand below)
Though the opportunities in the Indian scrap sector are large, the industry is unorganized. Thus, U.S. companies are encouraged to be careful in all of their deals. Many Indian scrap importers are small and it is important for U.S. exporters to check the credentials of an Indian company. ISRI’s specifications should be used at all times to eliminate any possible discrepancies. To avoid disputes, U.S. exporters must insist on inspections before shipping the products. In addition, U.S. exporters must adhere to the Indian government regulations related to scrap metal exports including registration with India’s Director General of Foreign Trade. Disputes can be reduced by adhering to the critical aspects of procedures for exporting cargo (see Market Entry) of scrap containers to India. (For duty information, see Custom Duties)
See also:
Market Demand
U.S. Scrap metal exports to India 2001-2005 (approximate metric tons)
Source: Scrap, a publication of the U.S. Institute of Scrap Recycling Industries.
2001 |
2002 |
2003 |
2004 |
2005 | |
Aluminum |
5,500 |
5,300 |
4,200 |
5,500 |
5,800 |
Copper |
36,200 |
47,424 |
50,986 |
49,290 |
20,282 |
Ferrous |
121,000 |
7,000 |
27,000 |
245,000 |
743,000 |
Lead |
1,052 |
1,452 |
2,077 |
1,281 |
3,555 |
Nickel & Alloy |
530 |
70 |
200 |
66 |
89 |
Stainless Steel |
39,000 |
39,000 |
42,000 |
49,000 |
64,000 |
Zinc |
9,534 |
7,044 |
6,134 |
4,583 |
6,018 |
