India Aluminium Scrap HS7602 Import Data 2025 June Overview

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

India’s aluminium scrap imports under HS Code 7602 in June 2025 reveal a market split between high-grade and bulk material, with the US supplying premium scrap at higher unit prices while Saudi Arabia and UAE dominate volume with lower-grade supply. The US leads as the top supplier by value, reflecting advanced recycling systems, while oil-rich nations contribute cheaper, heavier shipments. Importers must balance quality and cost, especially with India’s 2.5% BCD duty and potential hikes. This analysis, covering June 2025, is based on cleanly processed Customs data from the yTrade database.

India Aluminium Scrap (HS 7602) 2025 June Import Background

What is HS Code 7602?

HS Code 7602 covers aluminium waste and scrap, a critical raw material for India’s secondary aluminium industry. It is widely used in manufacturing, construction, and automotive sectors due to its cost-effectiveness and recyclability. Global demand remains stable, driven by sustainability trends and the push for circular economies.

Current Context and Strategic Position

India’s import policy for aluminium scrap (HS Code 7602) maintains a 2.5% basic customs duty, 18% IGST, and 10% social welfare surcharge, with no major changes reported as of June 2025 [Seair]. The Aluminium Association of India has advocated for higher duties to align with primary metal tariffs, but no adjustments have been implemented [Economic Times]. Given India’s reliance on imports to meet domestic demand, vigilance is essential to monitor potential policy shifts or global supply chain disruptions affecting India’s aluminium scrap imports under HS Code 7602 in 2025.

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

Key Observations

In June 2025, India's import of aluminium scrap under HS Code 7602 reached $521.20 million in value and 94.69 million kilograms in volume, indicating sustained industrial demand despite minor monthly fluctuations.

Price and Volume Dynamics

The monthly data shows a 4.2% decrease in value from May to June, alongside a 6.7% increase in volume, suggesting lower per-unit prices due to ample global supply. Quarter-over-quarter, Q2 2025 saw a 9.5% rise in total import value compared to Q1, driven by steady volume growth from February onward. This pattern aligns with typical seasonal stock replenishment cycles in the aluminium industry, where higher scrap imports often precede increased manufacturing activity in sectors like automotive and construction during the latter half of the year.

External Context and Outlook

Policy stability under India's current import regime, with basic customs duty holding at 2.5% and no major changes reported in June 2025 [Cybex.in], has supported consistent import flows. Industry calls for duty hikes to 10% remain unaddressed (Economic Times), reducing uncertainty and encouraging steady procurement. Looking ahead, sustained demand from domestic recycling and production sectors is expected to maintain import momentum, barring any sudden shifts in global scrap availability or trade policies.

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

Product Specialization and Concentration

India's aluminium scrap import market under HS Code 7602 in June 2025 is entirely concentrated in a single product category. According to yTrade data, aluminium waste and scrap (HS Code 76020010) accounts for all imports by value and weight, with a unit price of USD 5.50 per kilogram. This complete dominance shows a market focused solely on bulk commodity scrap without any significant product diversification.

Value-Chain Structure and Grade Analysis

The import structure lacks any sub-category differentiation, as all trade flows through the single waste and scrap code. This homogeneous product profile indicates a pure commodity market where material is traded based on weight and basic grade specifications rather than specialized forms or value-added processing stages. The absence of other sub-codes suggests India's aluminium scrap imports consist primarily of standardized bulk material for remelting.

Strategic Implication and Pricing Power

This commodity structure means Indian importers have little pricing power and must compete globally for scrap based on price. [Fastmarkets] reports increasing regional competition for scrap imports, while industry requests to raise duties [Economic Times] highlight cost sensitivity. Importers should focus on securing consistent scrap volumes at competitive prices rather than product differentiation strategies for India Aluminium scrap HS Code 7602 Import 2025 June.

Check Detailed HS 7602 Breakdown

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

Geographic Concentration and Dominant Role

For India Aluminium scrap HS Code 7602 Import in 2025 June, the dominant supplier is the UNITED STATES, accounting for 16.45% of import value but only 10.03% of weight, indicating a higher unit price and suggesting higher-grade scrap. This value-weight disparity points to the US supplying premium-quality aluminium scrap, while other top countries like SAUDI ARABIA show lower value per weight, hinting at bulk, lower-grade material.

Partner Countries Clusters and Underlying Causes

The top partners form two clusters: first, SAUDI ARABIA and UNITED ARAB EMIRATES, with high weight shares but lower value ratios, likely due to their oil industry generating large volumes of lower-quality scrap. Second, the UNITED STATES, UNITED KINGDOM, and AUSTRALIA, with balanced value and weight, reflect advanced recycling systems producing consistent, mid-to-high-grade scrap. A third group, including NETHERLANDS and GERMANY, has smaller shares, possibly serving niche or transit roles.

Forward Strategy and Supply Chain Implications

Importers should prioritize high-value sources like the US for quality but monitor costs, as India's import duty for aluminium scrap remains at 2.5% BCD plus other taxes, with potential for increases as industry groups push for hikes [Seair]. Supply chains must adapt to possible regulatory changes and ensure compliance with restricted sub-headings under HS Code 7602 (Seair).

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India Aluminium scrap Import 2025 June under HS Code 7602 operates as a pure commodity market. Price is driven by global scrap quality and geopolitical supply risks. High-grade material from the US commands premium prices. Bulk, lower-grade scrap from Gulf suppliers offers cost savings but variable quality. Supply chains face vulnerability from potential duty hikes and intense global competition for scrap. India’s role is as a bulk processing hub, dependent on consistent imported volumes for remelting.

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

• Target high-value, high-frequency buyers with bulk offers. They drive 63% of import value under HS Code 7602. Secure long-term contracts to ensure stable demand and reduce market volatility.
• Prioritize US-sourced scrap for quality-critical production. US imports show higher value per weight, indicating superior material. Use trade data to negotiate better prices with US suppliers for premium scrap grades.
• Diversify sources to include Saudi Arabia and UAE for cost-efficient bulk supply. These partners offer high volume at lower unit cost. Balance quality and cost by blending sources to optimize overall import spending.
• Monitor regulatory updates and duty changes monthly. Policy shifts can abruptly alter import costs. Subscribe to real-time trade alerts to adjust sourcing strategies before new regulations take effect.

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 June?

India's aluminium scrap imports in June 2025 saw a 4.2% drop in value but a 6.7% rise in volume, reflecting lower per-unit prices due to ample global supply. The market remains stable, supported by steady industrial demand and unchanged import duties.

Q2. Who are the main partner countries in this India Aluminium scrap Import 2025 June?

The top supplier is the United States, accounting for 16.45% of import value, followed by Saudi Arabia and the UAE, which contribute significant volume but lower value per weight.

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

The US supplies higher-grade scrap at a premium price, while Saudi Arabia and the UAE focus on bulk, lower-grade material, leading to value-weight disparities.

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

Importers should prioritize high-value, high-frequency buyers (63% of market value) and secure reliable bulk supply from premium sources like the US to mitigate price volatility.

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

Suppliers from the US and other high-grade scrap producers have a competitive edge, while bulk exporters must compete on volume to meet India’s steady demand.

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

The scrap is primarily standardized bulk material for remelting, catering to India’s recycling and manufacturing sectors, particularly automotive and construction.