Scrap Markets for India's Green Steel Transition

This whitepaper outlines the dynamics of scrap markets in relation to India's transition towards green steel production. It discusses the challenges faced by India as the second-largest importer of steel scrap, highlighting a significant domestic supply shortfall. In FY25, scrap imports decreased by 18% year-on-year, attributed to increased domestic recovery and geopolitical disruptions. Despite this decline, India is projected to face a supply deficit of 40-50 million metric tons (MMT) by 2050, driven by the government's target for a 50% ferrous scrap share in steelmaking by 2047. The report emphasizes the critical role of ferrous scrap in decarbonizing the steel sector, reducing reliance on coking coal, and mitigating risks associated with imported materials. It also notes that India's scrap utilization rate is approximately 23%, significantly lower than the global average of 32%, indicating both structural constraints and potential for growth in scrap-based steel production.