India Aluminium Scrap HS7602 Import Data 2025 May Overview

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

India’s Aluminium scrap imports under HS Code 7602 in May 2025 show strong reliance on high-quality US supplies, with the US accounting for 14.72% of total value, reflecting superior recycling standards. The market remains concentrated among key suppliers like Saudi Arabia and the UAE, signaling stable but potentially price-sensitive trade flows. This analysis, covering May 2025, is based on processed Customs data from the yTrade database.

India Aluminium Scrap (HS 7602) 2025 May 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 production. This product is widely used in industries such as automotive, construction, and packaging due to its cost-effectiveness and recyclability. Global demand remains stable, driven by sustainability trends and the need for energy-efficient manufacturing processes.

Current Context and Strategic Position

India’s aluminium scrap imports under HS Code 7602 face a 2.5% basic customs duty, alongside an 18% IGST and 10% Social Welfare Surcharge, totaling ~21.25% [Cybex]. Industry appeals to raise duties to 10% (matching primary aluminium) remain unresolved [Economic Times]. As a key importer in 2025, India’s reliance on scrap for domestic production underscores the need for vigilance in policy shifts and global price trends.

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

Key Observations

In May 2025, India's imports of Aluminium scrap under HS Code 7602 surged to 544.18 million USD in value and 88.71 million kilograms in volume, marking a strong performance for the month.

Price and Volume Dynamics

The import value and volume increased significantly in May compared to April, with value rising from 468.69 million USD to 544.18 million USD and volume from 76.44 million kg to 88.71 million kg. This growth aligns with typical seasonal demand cycles in the aluminium industry, where heightened construction and manufacturing activities during this period drive increased scrap imports to replenish stocks and support production.

External Context and Outlook

The stable import policy, with a basic customs duty of 2.5% and total duty around 21.25% as per recent updates [Cybex], has facilitated consistent import flows. However, ongoing industry appeals to increase the duty to 10% (Economic Times) could introduce future uncertainty, potentially affecting import costs and volumes if changes are enacted.

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

Product Specialization and Concentration

According to yTrade data, the India Aluminium scrap HS Code 7602 Import market for 2025 May is dominated by sub-code 76020010, described as Aluminium waste and scrap, which accounts for all import value and weight. The unit price is 6.13 US dollars per kilogram, indicating a standardized commodity trade. Sub-code 76020090 is an anomaly with only one shipment and minimal value, and it is isolated from the main analysis.

Value-Chain Structure and Grade Analysis

With the anomaly removed, the market consists solely of a single product category under sub-code 76020010, Aluminium waste and scrap. This structure points to a trade in fungible bulk commodities, with no differentiation in value-add stages or quality grades, suggesting that pricing is likely tied to global scrap metal indices.

Strategic Implication and Pricing Power

For importers, the bulk nature limits pricing power, as costs are influenced by international market fluctuations. Import duties, such as the 2.5% basic customs duty, affect total costs and require careful management in procurement strategies for India Aluminium scrap HS Code 7602 Import in 2025. [Economic Times] highlights industry efforts to adjust duties, which could impact future import decisions.

Check Detailed HS 7602 Breakdown

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

Geographic Concentration and Dominant Role

In May 2025, India's import of Aluminium scrap under HS Code 7602 shows strong geographic concentration, with the UNITED STATES as the dominant supplier, accounting for 14.72% of the total value. The higher value ratio compared to its weight ratio (14.72 vs. 12.23) suggests that the US supplies higher-grade scrap, likely due to advanced recycling standards and quality controls. This pattern indicates that for India Aluminium scrap imports, the US plays a key role in providing premium material.

Partner Countries Clusters and Underlying Causes

The top suppliers form two main clusters based on trade patterns. First, the US and SAUDI ARABIA both have high value and weight ratios, pointing to their roles as major sources of high-quality scrap, possibly driven by robust industrial recycling systems. Second, countries like the UNITED ARAB EMIRATES and UNITED KINGDOM show moderate ratios, which may stem from their positions as regional trade hubs with efficient logistics for scrap handling. A third group, including SINGAPORE and MALAYSIA, has lower ratios, likely due to smaller volumes or mixed-grade supplies influenced by geographic proximity.

Forward Strategy and Supply Chain Implications

For importers of India Aluminium scrap, focusing on high-value sources like the US can ensure quality, but they must consider cost factors, including import duties. The current basic customs duty is around 2.5%, with additional taxes making the total duty approximately 21.25%, as reported by [Fastmarkets]. Buyers should secure long-term contracts with reliable suppliers to mitigate potential price increases, especially if duties rise as industry groups have urged. Monitoring policy changes is crucial for cost management in the supply chain.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

The India Aluminium scrap Import 2025 May market under HS Code 7602 is a bulk commodity trade. Prices are driven by global scrap indices and material quality. High-volume buyers dominate, creating reliance on steady demand. The United States supplies premium scrap due to advanced recycling standards. Supply chain implications include vulnerability to international price swings and policy changes like import duties. India's role is as a processing hub for raw material, requiring secure, high-quality inflows.

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

• Monitor US export data for HS Code 7602 to target high-grade scrap suppliers, ensuring consistent quality for production.
• Analyze buyer purchase frequency to forecast demand cycles and optimize inventory levels, avoiding overstock or shortages.
• Track policy updates on import duties for aluminium scrap to adjust cost calculations and maintain competitiveness.
• Diversify supplier base beyond top partners like the US to mitigate geopolitical and supply disruption risks.

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 May?

India's Aluminium scrap imports surged in May 2025, with value rising to $544.18 million and volume to 88.71 million kg, reflecting seasonal demand from construction and manufacturing sectors. Stable import policies (2.5% basic duty) supported this growth, though potential duty hikes could impact future costs.

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

The UNITED STATES dominates as the top supplier (14.72% of import value), followed by SAUDI ARABIA, the UNITED ARAB EMIRATES, and the UNITED KINGDOM. The US supplies higher-grade scrap, while others act as regional trade hubs.

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

The uniform unit price ($6.13/kg) under HS Code 76020010 indicates standardized bulk commodity trade. The US’s higher value-to-weight ratio suggests premium scrap quality, but pricing remains tied to global indices.

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

Importers should prioritize large, frequent buyers (57.97% of market value) for stability and secure long-term contracts with high-quality suppliers like the US to mitigate price volatility and duty risks.

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

Overseas suppliers, especially the US, benefit from steady demand for premium scrap. However, reliance on India’s concentrated buyer base requires diversification to smaller segments (e.g., niche recyclers) to reduce vulnerability.

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

Imported Aluminium scrap is primarily used as a fungible raw material for recycling, feeding India’s construction and manufacturing sectors due to its cost efficiency and bulk availability.