India Aluminium Scrap HS7602 Import Data 2025 March Overview

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

India’s Aluminium scrap (HS Code 7602) imports in March 2025 reveal a market split between bulk, lower-grade material from the UAE and premium-quality scrap from the US, with the UAE dominating by volume (16.14% weight share) but the US commanding higher unit prices (7.07 USD/kg). Buyer concentration remains a risk, while supply chain strategies must navigate India’s 21.25% import duty. This analysis is based on cleanly processed Customs data from the yTrade database for March 2025.

India Aluminium Scrap (HS 7602) 2025 March Import Background

What is HS Code 7602?

HS Code 7602 refers to aluminium waste and scrap, a secondary raw material widely used in India’s manufacturing and recycling industries. It is a critical input for sectors like automotive, construction, and packaging, driven by its cost-effectiveness and sustainability benefits. Global demand remains stable due to its role in circular economy initiatives and energy-efficient production processes.

Current Context and Strategic Position

As of March 2025, India’s aluminium scrap imports under HS Code 7602 face a total effective duty of 21.25%, comprising a 2.5% Basic Customs Duty (BCD), 18% IGST, and 10% Social Welfare Surcharge [Cybex]. Industry discussions suggest potential duty hikes to align scrap rates with primary aluminium, but no changes have been implemented yet [Economic Times]. India’s reliance on imports for scrap underscores its strategic importance in meeting domestic industrial demand, necessitating close monitoring of trade policies and global market trends.

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

Key Observations

India's Aluminium scrap HS Code 7602 Import in 2025 March reached $490.99 million in value, with a volume of 76.14 million kg, marking a strong recovery from the previous month.

Price and Volume Dynamics

The March figures represent a 25.1% month-on-month increase in value from February's $392.39 million, while volume surged by 22.5% from 62.14 million kg. This rebound aligns with typical seasonal restocking cycles in the aluminium industry, as fabricators often ramp up raw material procurement ahead of peak construction and manufacturing periods in the second quarter. The consistent import momentum—with Q1 2025 totals significantly higher than early 2024—reflects robust industrial demand, though the February dip may indicate temporary supply chain or pricing adjustments.

External Context and Outlook

Stable import policy under HS Code 7602 has supported this trend, with duties remaining unchanged at 2.5% basic customs duty plus levies [Fastmarkets]. However, industry calls for aligning scrap and primary metal duties (Fastmarkets) could future uncertainty. Global scrap price volatility and competitive sourcing from Southeast Asia—where imports rose 70.6% year-on-year in January (Fastmarkets)—may further influence India's import dynamics in coming months.

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

Product Specialization and Concentration

According to yTrade data, the India Aluminium scrap HS Code 7602 Import in 2025 March is almost entirely concentrated in sub-code 76020010, described as aluminium waste and scrap, which holds a near-total share of import value and weight. Its unit price is 6.45 USD per kilogram. A separate sub-code, 76020090, also for aluminium waste and scrap, has a slightly higher unit price of 7.23 USD per kilogram but accounts for a negligible portion of imports, indicating it may be an isolated, specialized grade not representative of the main market.

Value-Chain Structure and Grade Analysis

The import structure is simplistic, with sub-code 76020010 dominating as the standard bulk grade of aluminium scrap, traded as a fungible commodity likely tied to global indices. The minimal presence of 76020090 suggests a potential niche for higher-quality or specific types of scrap, but its insignificant volume means the market operates primarily as a homogeneous bulk trade without substantial value-add differentiation.

Strategic Implication and Pricing Power

Pricing power for India's aluminium scrap imports in March 2025 rests with large-scale suppliers due to the concentrated nature of trade, with costs driven by commodity market fluctuations. The current import duty structure of approximately 21.25% [Cybex] adds to import expenses, and potential duty increases to align with primary aluminium rates (Cybex) could heighten cost pressures, pushing buyers to focus on efficient sourcing and supply chain stability.

Check Detailed HS 7602 Breakdown

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

Geographic Concentration and Dominant Role

In March 2025, India's import of Aluminium scrap under HS Code 7602 is heavily concentrated, with the United Arab Emirates dominating by weight share at 16.14%, indicating its role as the largest volume supplier. The value-to-weight disparity—where the UAE's value ratio (11.44%) is lower than its weight ratio—suggests a lower unit price of approximately 4.57 USD/kg, pointing to bulk, lower-grade scrap. In contrast, the United States shows a higher value ratio (13.22%) compared to weight (12.05%), implying a premium unit price near 7.07 USD/kg for higher-quality material.

Partner Countries Clusters and Underlying Causes

Two clear clusters emerge: first, the UAE and Singapore, with weight ratios exceeding value ratios (e.g., UAE 16.14% vs. 11.44%), likely sourcing bulk, mixed scrap from industrial regions with high production volumes. Second, the US and Saudi Arabia, where value ratios surpass weight ratios, indicate supplies of higher-grade scrap, possibly from advanced recycling systems or regulated waste streams. A third group, including the UK and Australia, shows balanced ratios, suggesting consistent mid-range quality sources.

Forward Strategy and Supply Chain Implications

The high effective import duty of 21.25% [cybex.in] necessitates cost-focused strategies, such as prioritizing high-quality scrap from the US or Saudi Arabia to offset duties through better yield. Alternatively, bulk sourcing from the UAE could reduce per-unit costs for volume-driven operations. Market players should monitor potential duty increases and diversify suppliers to mitigate supply chain risks.

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

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

Strategic Supply Chain Overview

The India Aluminium scrap Import market for HS Code 7602 in 2025 March operates as a bulk commodity trade. Core price drivers are global scrap indices and material quality grades, heavily influenced by the 21.25% import duty. Supply chain implications center on securing consistent bulk volumes from key partners like the UAE for cost efficiency or the US for premium quality, with processing hubs in India focusing on yield optimization to offset duty costs.

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

• Target high-frequency, high-value buyers with bulk supply contracts. Their consistent demand ensures stable revenue and justifies large shipments under HS Code 7602.
• Prioritize US and Saudi Arabian suppliers for higher-grade scrap. Better material quality improves processing yield, counterbalancing India’s high import duties.
• Use UAE and Singapore sources for high-volume, lower-cost scrap. This reduces per-unit costs for large-scale operations needing basic material inputs.
• Monitor buyer purchase cycles to anticipate order timing. Aligning shipments with buyer frequency prevents inventory gaps or overstock situations.
• Diversify suppliers across geographic clusters. Mitigates risk from supply disruptions in any single region and ensures grade flexibility.

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 March?

India's aluminium scrap imports surged 25.1% in value and 22.5% in volume from February 2025, reflecting seasonal restocking ahead of peak industrial demand. The rebound aligns with typical Q2 procurement cycles, though global scrap price volatility and competitive sourcing from Southeast Asia may influence future trends.

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

The UAE (16.14% weight share) and the US (12.05% weight share) dominate India's aluminium scrap imports. The UAE supplies bulk, lower-grade scrap, while the US provides higher-quality material at a premium price.

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

Price differences stem from scrap grade variations. The UAE's lower unit price (4.57 USD/kg) reflects bulk, mixed scrap, while the US's higher price (7.07 USD/kg) indicates premium-grade material from advanced recycling systems.

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

Importers should prioritize relationships with high-value, high-frequency buyers (60% of market value) for stability. Diversifying suppliers—like blending UAE's bulk scrap with US premium grades—can optimize cost and quality under the 21.25% import duty.

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

Overseas suppliers must cater to India's bulk demand (UAE model) or high-quality niche (US model). The concentrated buyer market rewards reliability, with high-volume purchasers driving most transactions.

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

Aluminium scrap is primarily traded as a fungible commodity for industrial recycling, feeding into construction and manufacturing supply chains where cost-efficient raw material sourcing is critical.