Skip to main content

Dumping of cheaper finished products cuts into scrap imports

Metallic scrap recyclers in India are in a fix over the sudden change in the nomenclature of some types of metallic scrap by the global industry body Institute of Scrap Recycling Industries ( ISRI). This, at a time when finished products are available at cheap rates due to dumping, resulting in a fall in scrap demand for recycling.
Washington- based ISRI, which represents 1,600 scrap recycling companies worldwide, amended 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 nonferrous metal scrap were allowed to trade freely.
The change in scrap trading specifications has come at a time when the scrap recycling industry in India is facing reduced demand from consumer industries and cheap import of finished products from countries with which India has signed free trade agreements ( FTAs).
“Any change in quality specification has a temporary impact on import. The prevailing sentiment is weak in overall scrap recycling industry, resulting in overall import falling by around 15 per cent in the past few months. We expect the trend to continue throughout this year as well,” said a senior industry official.
Metals recovered through recycling of scrap meet half of India’s base metals demand. A substantial portion of India’s steel production is met through recycling of ferrous scrap. In 2013- 14, for example, 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.
“More than change in scrap specification, asharp 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,” said Dhawal Shah, vice- president, Metal Recycling Association of India.
ISRI specification bans loose or extra iron attachments to ‘ vador sealed unit’, a type of metallic scrap.
Trade sources believe the government is concerned about the quality of scrap imported into the country.
“There has been shrinkage in metallic output from recyclers resulting in proportionate decline in scrap import,” said Shah.
Meanwhile, metal recyclers have urged the government to allow local processing unit to flourish rather than pushing them into peril through inverse import duty structure.
Since consumer industries have started import of finished products from countries such as Vietnam, with which India has signed FTA. So, the demand of finished products from local sources has declined steeply in the past few years. The situation has worsened in the past few months with demand of foundry products from auto sector having shrunk.
“The government should allow import of finished products only with 35 per cent of value addition as specified in FTA norms. There is hardly any room for 35 per cent value addition in metals. Hence, the government should exempt categories like metals from FTA ambit as the same disowns the ‘Make in India’ vision,” said Rohit Shah, managing director of Perfect Valves, a city- based meal recycler.
Business Standard, New Delhi, 28th Oct. 2015

Comments

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025