India Aluminium Scrap Import Market -- HS 7602 Trade Data & Price Trend (Q1 2025)

India Aluminium Scrap Import (HS 7602) Key Takeaways

India’s aluminium scrap imports under HS Code 7602 in Q1 2025 reveal a market dominated by low-grade, bulk scrap, with 98% of volume concentrated in a single sub-code (76020010). The trade is highly volatile, with a 24% drop in February followed by a 25% rebound in March, reflecting sensitivity to policy shifts and global price swings. Supplier risk is acute, as 63% of import value hinges on a handful of high-frequency traders, while geographic reliance on the UAE and USA exposes the supply chain to geopolitical and pricing pressures. This analysis is based on cleanly processed Customs data from the yTrade database for Q1 2025.

India Aluminium Scrap Import (HS 7602) Background

What is HS Code 7602?

HS Code 7602 covers aluminium waste and scrap, including sub-categories like clean aluminium lithographic sheets and mixed low-copper clippings. This recycled material is critical for industries such as automotive, construction, and packaging, where cost efficiency and sustainability drive demand. Global trade in aluminium scrap remains stable due to its role in reducing production costs and environmental impact.

Current Context and Strategic Position

India’s aluminium scrap imports under HS Code 7602 face an 18% GST rate, unchanged since 2017 [ClearTax], while industry groups advocate for higher customs duties to align with primary aluminium tariffs [Economic Times]. As a key consumer, India’s aluminium scrap import market hinges on policy adjustments and global supply dynamics, necessitating close monitoring of HS Code 7602 trade data for shifts in pricing or regulatory frameworks. Strategic sourcing and compliance remain priorities for stakeholders.

India Aluminium Scrap Import (HS 7602) Price Trend

Key Observations

India's aluminium scrap imports under HS code 7602 reached approximately $1.4 billion in Q1 2025, demonstrating notable monthly volatility with values of $517.34 million in January, $392.39 million in February, and $490.99 million in March. This India Aluminium scrap Import trend reflects a quarter marked by significant shifts in import activity, driven primarily by value-based fluctuations rather than consistent volume patterns.

Price and Volume Dynamics

The hs code 7602 value trend shows a sharp decline in February, dropping by 24% from January, followed by a 25% recovery in March. This sequential movement suggests importers were reacting to short-term market signals, possibly anticipating policy changes or adjusting to seasonal demand cycles in the aluminium recycling industry, where post-winter months often see increased industrial activity and inventory rebuilding. The rebound in March indicates resilience, potentially aligning with broader economic recovery phases in manufacturing sectors.

External Context and Outlook

The volatility in imports can be partly explained by ongoing policy discussions, as the aluminium industry has urged the government to increase the basic customs duty on scrap to 10%, matching that of primary aluminium, to protect domestic producers [Economic Times]. Additionally, the stable GST rate of 18% on aluminium waste and scrap (Cleartax) has not changed, but uncertainty around potential duty hikes may have prompted importers to accelerate or delay shipments, contributing to the observed instability. Looking ahead, any official policy adjustments could further influence import dynamics, making monitoring of customs notifications crucial for market participants.

India Aluminium Scrap Import (HS 7602) HS Code Breakdown

Product Specialization and Concentration

In Q1 2025, India's import market for HS Code 7602 is overwhelmingly dominated by a single product type, Aluminium waste and scrap, specifically under sub-code 76020010. According to yTrade data, this sub-code accounts for nearly all import value and weight, with a unit price of 10.13 USD per kilogram. The minor presence of sub-code 76020090, with a slightly higher unit price of 12.71 USD per kilogram, is isolated as an anomaly due to its negligible volume and does not impact the main market analysis.

Value-Chain Structure and Grade Analysis

The market structure for India HS Code 7602 import is characterized by a homogeneous bulk commodity trade, focused solely on standard aluminium scrap. This lack of diversification suggests a trade in fungible materials, where products are largely undifferentiated and likely tied to global commodity indices rather than value-added processing. The absence of significant sub-categories indicates that imports are primarily raw, low-grade scrap suitable for recycling, without high-value or specialized grades.

Strategic Implication and Pricing Power

The high concentration in basic scrap imports under HS Code 7602 trade data implies limited pricing power for Indian buyers, who are dependent on global market fluctuations. To mitigate risks, businesses should focus on securing stable supply chains and monitoring policy changes, such as potential duty adjustments highlighted in industry appeals [Economic Times]. Strategic efforts might include advocating for favorable tariffs to maintain cost competitiveness in the recycling sector.

Check Detailed HS Code 7602 Breakdown

India Aluminium Scrap Import (HS 7602) Origin Countries

Geographic Concentration and Dominant Role

The United States is the dominant origin for India's aluminium scrap imports in Q1 2025, holding a 15.50% value share. Its value share exceeds its weight share (10.65%), indicating a strong preference for higher-grade, more valuable scrap material. The United Arab Emirates is the largest volume supplier with a 16.17% weight share, but its value share (13.34%) is lower, pointing to its role as a source for bulk, lower-value scrap.

Origin Countries Clusters and Underlying Causes

The top suppliers form three clear clusters. The High-Yield cluster includes the USA, United Kingdom, and Australia, where value shares outpace weight shares, confirming demand for premium scrap. The Volume/Hub cluster is led by the UAE and Saudi Arabia, where massive weight shares dominate, highlighting their function as bulk scrap processing and transshipment centers. A Transactional cluster features Singapore, the Netherlands, Malaysia, and Belgium, with moderate frequency and volume shares, suggesting these are important regional distribution points for scrap. Germany is a unique case with a very high value-to-weight ratio, implying highly specialized, niche scrap imports.

Forward Strategy and Supply Chain Implications

India's heavy reliance on bulk scrap from the UAE and Saudi Arabia creates a supply chain vulnerability to geopolitical disruptions in the Middle East. The domestic aluminium industry has urged the government to raise the import duty on scrap [Energy Economic Times], a policy that, if enacted, would likely reduce imports from these bulk suppliers first. For supply chain stability, India must diversify its sources and develop stronger trade relationships with premium scrap suppliers like the USA to secure higher-quality material and reduce its dependency on a few bulk origins.

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

Get Complete Origin Countries Profile

India Aluminium Scrap (HS 7602) Suppliers Analysis

Supplier Concentration and Dominance

India's aluminium scrap import market in Q1 2025 is heavily concentrated. According to yTrade data, a small group of high-value, high-frequency suppliers dominates. They account for 63% of the total import value and 58% of all shipments. This means the typical trade involves large, regular deliveries from a core set of key players.

Strategic Supplier Clusters and Trade Role

The profile of HS code 7602 suppliers indicates an intermediated, agent-driven market. The dominant cluster includes firms like GREENLAND TRADING and NICRO METALS, which specialize in bulk trading and recycling. Other clusters play supporting roles: some provide occasional large consignments, while many smaller, infrequent suppliers contribute to volume but not value. This structure points to reliance on professional traders rather than direct factory links.

Sourcing Strategy and Vulnerability

For Indian importers, the strategy should focus on nurturing relationships with major trading partners to secure stable supply. However, high dependence on a few agents creates vulnerability to price shifts or supply disruptions. [The Economic Times] reports industry calls for higher import duties on scrap, which could increase costs if implemented. Diversifying sources among smaller suppliers may offer backup options but will not reduce core reliance on traders.

Table: India Aluminium Scrap (HS 7602) Top Suppliers List (Source: yTrade)

Check Full Aluminium scrap Supplier lists

Action Plan for Aluminium Scrap Market Operation and Expansion

Strategic Supply Chain Overview

India's Aluminium scrap Import market is a bulk commodity trade. The hs code 7602 trade data shows extreme concentration in basic scrap. Price is driven by global scrap indices and material grade. The United States supplies higher-value scrap. The UAE and Saudi Arabia dominate volume with lower-grade material. This creates major supply chain risk. Reliance on few bulk origins and trading agents increases vulnerability. Policy changes, like potential duty hikes, could disrupt costs. The Aluminium scrap supply chain lacks diversification and value-added processing.

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

• Build direct relationships with US and UK suppliers. Use hs code 7602 trade data to identify high-yield partners. This secures better quality scrap and reduces dependence on bulk hubs.
• Diversify sourcing to include EU and Australian origins. Analyze supplier frequency reports to find reliable alternatives. This mitigates geopolitical risks from Middle Eastern supply chains.
• Advocate for stable import policies with industry groups. Monitor regulatory news and align with broader industry efforts. This protects against sudden cost increases from duty changes.
• Implement grade-based pricing in contracts. Use detailed import records to track quality variations. This ensures fair payment for higher-value material and improves margin control.
• Develop a contingency plan using smaller transactional suppliers. Maintain a list of active but less frequent partners from trade data. This provides backup options during supply disruptions from major agents.

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 Q1?

India's aluminium scrap imports in Q1 2025 showed significant volatility, with a 24% drop in February followed by a 25% rebound in March. This reflects reactive adjustments to market signals and potential policy uncertainty, including discussions on raising import duties.

Q2. Who are the main origin countries of India Aluminium scrap (HS Code 7602) 2025 Q1?

The United States (15.50% value share) and UAE (16.17% weight share) dominate, with the US supplying higher-value scrap and the UAE providing bulk, lower-grade material. Saudi Arabia and the UK are also key suppliers.

Q3. Why does the unit price differ across origin countries of India Aluminium scrap Import?

Price differences stem from grade variations: the US and UK supply premium scrap (higher value-to-weight ratios), while the UAE and Saudi Arabia focus on bulk, lower-value material under sub-code 76020010.

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

Importers should prioritize relationships with major traders like GREENLAND TRADING to ensure stable supply, while diversifying sources to mitigate risks from geopolitical or policy disruptions in bulk-supplying regions like the UAE.

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

Suppliers of high-grade scrap (e.g., US, UK) have leverage due to India's demand for quality material, while bulk suppliers (e.g., UAE) face vulnerability if India shifts policy or diversifies sources.

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

Imported scrap is primarily low-grade, undifferentiated material for recycling, with no evidence of high-value or specialized grades, indicating its use in basic aluminium reprocessing.

Detailed Monthly Report

India HS7602 Import Snapshot 2025 JAN

India HS7602 Import Snapshot 2025 FEB

India HS7602 Import Snapshot 2025 MAR