India Aluminium Scrap HS7602 Import Data 2025 February Overview

India Aluminium Scrap (HS 7602) 2025 February Import: Key Takeaways

India’s Aluminium Scrap Import under HS Code 7602 in February 2025 shows strong reliance on the UAE, which supplied 20.76% of import value, suggesting premium-grade material. The market remains concentrated, with Middle Eastern and Western suppliers like the US and UK offering distinct quality advantages, while Asian hubs facilitate re-exports. This analysis is based on cleanly processed Customs data from the yTrade database, covering February 2025.

India Aluminium Scrap (HS 7602) 2025 February Import Background

What is HS Code 7602?

HS Code 7602 refers to aluminium waste and scrap, a critical raw material for India's secondary aluminium industry. This category includes clean aluminium scrap (76020010) and other waste forms (76020090), primarily used in recycling to produce low-cost aluminium products. Global demand remains stable due to its cost-efficiency and sustainability benefits, particularly in construction, automotive, and packaging sectors.

Current Context and Strategic Position

India's aluminium scrap imports under HS Code 7602 face a 2.5% basic customs duty, 18% IGST, and 10% social welfare surcharge, totaling ~21.25% [Cybex]. The industry advocates for higher duties to align with primary aluminium rates, reflecting tensions between cost competitiveness and domestic production [Economic Times]. With India's 2025 February imports subject to restricted licensing and compliance checks, vigilance is essential to navigate evolving trade and environmental regulations.

India Aluminium Scrap (HS 7602) 2025 February Import: Trend Summary

Key Observations

In February 2025, India's imports of Aluminium Scrap under HS Code 7602 reached a value of 392.39 million USD with a volume of 62.14 million kg, showing a notable decrease from the previous month's performance.

Price and Volume Dynamics

The import value declined by approximately 24% month-over-month from January's 517.34 million USD, while volume data for January was unavailable, suggesting a potential data gap or seasonal adjustment. This drop aligns with typical industry cycles where February often sees reduced industrial activity post-holiday periods, leading to lower demand for aluminium scrap in recycling and manufacturing sectors. The aluminium scrap market is influenced by seasonal stock replenishment and production slowdowns, which can cause such short-term volatility.

External Context and Outlook

The consistent import policy framework, including a total duty of around 21.25% and restricted status requiring licenses [Cybex.in], provided stability without major disruptions in February 2025. However, industry pressures to raise duties to 10% (Cybex.in) could heighten future import costs and reduce volumes if implemented, impacting India Aluminium Scrap HS Code 7602 Import trends for the remainder of 2025.

India Aluminium Scrap (HS 7602) 2025 February Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's Aluminium Scrap HS Code 7602 Import for 2025 February is entirely concentrated in a single product type. The market is completely dominated by "Aluminium; waste and scrap" (HS 76020010), which accounts for all recorded import value and volume. This sub-code carries a unit price of 6.31 USD per kilogram, establishing a clear benchmark for the entire import category and indicating a highly specialized, undiversified trade flow into India.

Value-Chain Structure and Grade Analysis

The import structure shows no internal product differentiation, as all trade occurs under the single sub-code for general aluminium scrap. This uniform classification points to a bulk commodity market where material is largely fungible and traded based on weight rather than specific quality grades or advanced processing stages. The trade functions more like a raw material input stream, with pricing likely influenced by global scrap indices and metal markets rather than value-added features.

Strategic Implication and Pricing Power

For India Aluminium Scrap HS Code 7602 Import 2025 February, buyers face a consolidated supply base with limited product alternatives, reducing bargaining power and creating dependency on this single scrap category. The consistent unit price suggests stable but potentially volatile market conditions tied to commodity cycles. Importers must also navigate India’s restricted import policy for aluminium scrap, which requires licenses and compliance with regulatory standards [EximGuru]. Future duty changes—such as industry proposals to raise basic customs duty to 10%—could significantly impact cost structures and sourcing strategies [Economic Times].

Check Detailed HS 7602 Breakdown

India Aluminium Scrap (HS 7602) 2025 February Import: Market Concentration

Geographic Concentration and Dominant Role

In February 2025, India's import of Aluminium Scrap under HS Code 7602 showed strong geographic concentration, with the United Arab Emirates as the dominant supplier, accounting for 20.76% of import value and 17.67% of weight. The higher value ratio compared to weight ratio suggests that UAE-sourced scrap may command a premium unit price, around 7.42 USD/kg, indicating potentially higher quality or processed material, which is typical for commodity scraps where grade variations affect pricing.

Partner Countries Clusters and Underlying Causes

The top suppliers form distinct clusters: first, Middle Eastern nations like UAE and Saudi Arabia, likely benefiting from regional scrap availability and trade logistics; second, Western countries including the United States and United Kingdom, possibly supplying higher-grade scrap due to advanced recycling infrastructure; and third, Asian hubs such as Singapore and China HongKong, which may act as re-export points, leveraging their strategic ports and trading networks to facilitate flows into India.

Forward Strategy and Supply Chain Implications

For buyers, diversifying sources beyond dominant clusters like UAE could mitigate supply risks, while focusing on quality from US or UK suppliers may yield better value. Note that import duties for HS Code 7602 include a 2.5% basic customs duty, which the industry has urged to increase to 10% [SEAIR], potentially raising costs. Additionally, import restrictions require licenses [EximGuru], emphasizing the need for compliance in supply chain planning to avoid disruptions.

Table: India Aluminium Scrap (HS 7602) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Aluminium Scrap (HS 7602) 2025 February Import: Action Plan for Aluminium Scrap Market Expansion

Strategic Supply Chain Overview

The India Aluminium Scrap Import 2025 February market under HS Code 7602 is a high-volume commodity trade dominated by a single product type and concentrated buyer segment. Core price drivers include global scrap indices, material quality variations (e.g., UAE-sourced scrap at 7.42 USD/kg), and India’s import policy risks like potential duty hikes. Supply chain implications highlight critical dependency on bulk shipments from the UAE and other key partners, creating vulnerability to geopolitical disruptions or regulatory changes. This structure favors large, frequent buyers but exposes the market to supply shocks and cost volatility.

Action Plan: Data-Driven Steps for Aluminium Scrap Market Execution

• Diversify sourcing beyond the UAE using trade data to identify alternative suppliers in the US or UK – This reduces supply chain risk and may secure higher-quality material at competitive prices.
• Segment buyer engagement by focusing on high-frequency, high-volume importers for stable contracts – Prioritizing these buyers ensures consistent revenue and aligns with dominant market dynamics.
• Monitor regulatory updates on HS Code 7602 duties and licensing requirements in real-time – Proactive compliance avoids costly delays and capitalizes on policy shifts before competitors.
• Analyze unit price discrepancies across source countries to negotiate better terms – Leveraging quality-based pricing gaps maximizes cost efficiency per shipment.
• Build relationships with smaller regular buyers to create a secondary revenue stream – This balances dependency on major players and taps into steady, niche demand.

Take Action Now —— Explore India Aluminium Scrap Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Aluminium Scrap Import 2025 February?

The import value dropped 24% month-over-month to $392.39M, likely due to post-holiday industrial slowdowns. The market remains highly concentrated, with all imports classified under a single scrap type (HS 76020010), making it vulnerable to commodity cycles.

Q2. Who are the main partner countries in this India Aluminium Scrap Import 2025 February?

The UAE dominates with 20.76% of import value, followed by other Middle Eastern, Western (US/UK), and Asian (Singapore/Hong Kong) suppliers. These clusters reflect regional scrap availability and trade logistics.

Q3. Why does the unit price differ across India Aluminium Scrap Import 2025 February partner countries?

Price variations stem from quality differences, with UAE-sourced scrap commanding a premium (7.42 USD/kg) versus the benchmark 6.31 USD/kg. Western suppliers may also provide higher-grade material due to advanced recycling infrastructure.

Q4. What should importers in India focus on when buying Aluminium Scrap?

Prioritize high-volume, frequent buyers (61.16% of market value) for stability, but diversify sources beyond the UAE to mitigate supply risks. Compliance with India’s 2.5% import duty and licensing requirements is critical.

Q5. What does this India Aluminium Scrap import pattern mean for overseas suppliers?

Suppliers from the UAE and Western countries have reliable demand but must monitor potential duty hikes (proposed 10% rate). Smaller Asian hubs can leverage re-export opportunities via strategic ports.

Q6. How is Aluminium Scrap typically used in this trade flow?

The uniform HS 76020010 classification indicates bulk commodity trade, primarily as raw material input for recycling or manufacturing, with pricing tied to global scrap indices rather than value-added features.